Credit cards Updated:
The European Commission has proposed new rules to create a cap on fees charged to retailers by credit and debit card providers.
The new rules, which are still awaiting approval, will initially mean that the cost of processing all cross-border transactions will be limited to 2% for all debit cards and 3% for credit cards.
For instance, if a UK cardholder were to make a purchase on their credit card in Spain, the card provider would not be able to charge the owner of the shop any more than 3% of the value of the transaction.
The initial cap is planned to last for a two-year period, after which the cap, may be extended to the so-called interchange fees on domestic payments using all cards.
Some consumer groups have aired their concerns that, whilst the introduction of a cap on charges may be good news for retailers, cardholders could incur higher debit and credit card fees as a result.
Banks have also warned that consumers might have to pay an extra £11 a year for transactions on their debit cards, whilst credit card fees could cost an extra £25 a year.
If signed off by the European Parliament and a number of countries in the European Union, the implementation of the cap could begin towards the end 2014.
Got more then one Credit Card don't pay more then you need too! - Compare 0% purchase credit cards nowGet enough cashback to pay for your cards - Compare the best cashback credit cards
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.