Brussels wants to limit the amount Mastercard, Visa and the banks can earn - but charges may be needed or "cashback axed" to replace the lost revenue.

The European Commission is expected to confirm next week that interchange fees levied on retailers for card purchases will be capped. The loss of revenue will be a blow to Mastercard and Visa, which earn huge revenues from the fees but supporters of the policy say it will lead to lower prices in shops and on online stores. But research commissioned by Mastercard has suggested that such a cap would force banks, which also earn from the charges, to lead to additional charges of up to £11 on debit cards or £25 on credit cards, based on the revenue that would be lost to card providers. In practice, it would more likely threaten the perks offered on credit cards, such as cashback and loyalty schemes....Read more HERE

Previous Blog: 5th May 2013 - Britons have to pay for using our debit and credit cards - and cashback could be scrapped

EU rules threaten free banking and credit card cashback