Plans to cut transaction fees on debit and credit cards in the European Union have been published - but there is disagreement over the potential impact.
The European Commission estimates that the EU payment market is worth 130bn euros (£112bn) but is "fragmented and expensive". It wants to cap "interchange fees" to a maximum of 0.3% of a transaction. The fees involved are paid by shops and businesses to banks, every time a consumer uses his or her card. Retailers say customers could ultimately benefit from lower prices in the shops as a result of the proposals, which could take years to implement. But banks argue that consumers will instead end up paying higher charges to use debit and credit cards......

AAD Previous Blogs:

EC pushes ahead with cap that threatens 'free' debit cards
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EU investigation to probe Mastercard fees
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