Interchange fees are charged by a cardholder’s bank to a retailer’s bank every time a consumer makes a card-based purchase. While consumers are often unaware of such fees, they cost retailers and ultimately consumers tens of billions of euros every year. The level of the fees varies widely from one member state to another, creating barriers to the EU internal market.
The maximum levels for interchange fees will apply as from 6 months after entry into force by the regulation and stipulate, for example, that no more than 0.3 percent be charged, while this value will drop to 0.2 percent of the value of the transaction for debit cards.
However, for domestic debit card transactions, member states may allow a per transaction interchange fee of no more than 5 eurocents in combination with the 0.2 percent cap.
According to the EU, the new rules will encourage competition and make it easier for new entrants to join the market, leading to broader availability of payment instruments.
The EU explained in a statement that these new mechanisms will allow retailers to be aware of the level of fees paid when accepting cards. The new rules will enable them to more easily select which payment cards to accept.