EU, Visa Europe Reach Accord on Interchange
Feb. 27, 2014
Visa Europe agreed to cap interbank processing fees on credit-card transactions at .3 percent starting on Jan. 1, 2015. The European Union said the cap will result in a reduction in card-acceptance fees for merchants of 40 to 60 percent. The agreement was sealed when EU regulators blessed the provisions suggested by Visa Europe itself in an offer it made last year. The caps are also in line with those outlined in the second Payment Services Directive for online payments, released last summer .
Joaquín Almunia, EU competition chief, said the commitment was “excellent news for European consumers since the fees paid by retailers end up on their bills”.
Nicolas Huss, Visa Europe CEO, said: “This agreement provides legal certainty which will support our continued investment.”