Daily Management Review

EU to Lower Credit Card Fees


The European Parliament has established a single limit for bank fee payment by credit and debit cards.

Lawmakers were in favor of the introduction of the EU single limit for bank fee payment by credit and debit cards. The corresponding resolution was approved today by a majority vote at a plenary session of parliament European Parliament in Strasbourg - reports BBC News

This law, together with the future Directive on service payments will set rules for all money transfers in Europe. It should improve the transparency of charges, contribute to the development of competition and encourage both sellers and cardholders, look for card payment schemes with the best conditions, - said the author of the document Spain MP Pablo Zalba Bidegain.

According to the resolution, the maximum size of bank commission for cross-border payments using a debit card, which is now the seller's bank shall transfer bank card holder, is set at 0.2 per cent of the money transfer. For domestic payments, analogous quantity commission will be introduced after a five-year transition period.

For payments by credit card commission is set at 0.3 per cent of the amount transferred. In this case, Member States shall have the discretion to set lower limits in the calculation of charges within the country.

The new rules apply only to bank transactions involving four entities - the bank seller of the seller's bank card holder and owner of the card. A store that accepts a credit card deducts fees to issuing bank, and the bank deducts them to payment system. Therefore, sellers shift these costs to customers. As of 2013, when the EU began to fight for the reduction of tariffs, the number of card transactions in Europe exceeded 760 million. The average size of purchase - 49 euro. 

New EU rules cap commission: for debit card payments - 0.2%, and credit - 0.3% .In Europe, the market share of these payments through payment systems Visa and MasterCard is 96.8 percent. In other cases, the directive will not apply. Transactions using cards Diners Club International , American Express and so-called "business card" to pay business expenses and cash withdrawals in ATM also are not covered by the resolution.

EU Competition Commissioner, Margrethe Vestager said: "This legislation is good for consumers, good for business, and good for Europe. It will lead to lower prices and visibility of costs for consumers."

At present, the size of the banking commission that the seller's bank pays to card issuing bank cannot be disclosed differently in each EU country. However, this amount is put in charge. 

Science & Technology

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017

High-Level Talks To Be Held Between North And South Korea In Over Two Years

Sexually Abusing Children Interests An Estimated 20,000 British Men, Shows Police Monitoring Of Chat Sites

2018 Could See An Increase In Terror Attacks Where Both ISIS As Al-Qaeda Continue To Present Threats

What will happen to European populism in 2018?