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Carthy welcomes Parliament vote to cap card payment fees

10 March, 2015 - by Matt Carthy MEP


Matt Carthy MEP welcomes Parliament vote to cap card payment fees

Sinn Féin MEP for the Midlands North West Constituency Matt Carthy speaking from the European Parliament Plenary Session in Strasbourg on Tuesday welcomed the positive vote to cap Interchange fees for card-based payments.

Interchange fees for card-based payments, paid by the merchant's bank to the bank that issued the card, have not been transparent and they differ between EU countries, where they are subject in some cases to legislation and in others to decisions by national competition authorities

Carthy stated -

"The fees that banks charge retailers to process shoppers’ credit and debit card payments will be capped across the EU following the successful vote in Strasbourg today.”

"As a member of the Economic and Monetary affairs committee I have been working on this dossier on behalf of the GUE/NGL group for a number of months and I have been proactively involved in the ongoing negotiations leading up to this vote.  My role was to proactively engage in trialogues to ensure that consumers cannot be excessively charged for using their debit or credit cards or that retailers won’t suffer undue costs by card companies.”

“During discussions at ECON preparatory meetings I urged that the issue of cross-border transactions be included in any caps as this is particularly important in an Irish context where we need to break down all barriers in order to create an effective all-Ireland economy.”

“I am pleased to report that, as this agreement has been finalised, cross-border debit card transaction fees will now be capped at 0.2% of the transaction value. With domestic transactions, member states can apply the cap of 0.2% to the annual weighted average transaction value of all domestic transactions within the card scheme for just five years and thereafter the cap per transaction will universally apply.”

“For credit card transactions, a fee cap of 0.3% of the transaction value will apply. Member states, including Ireland, can decide to impose a lower cap if they so wish.”

“These changes will be a positive development for customers and for Irish businesses operating on a cross-border basis.”

"I very much welcome this positive vote and I will be monitoring this matter closely in order to ensure that this legislation is enacted as swiftly as possible".

ENDS 

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