agreement on Payment card fees is great news for competition and transparency
on the EU card market
18 December 2014 – HOTREC, the umbrella
association representing the European hospitality industry, strongly welcomes
the trilogue agreement reached between the EU Presidency and the European
Parliament on the Regulation on interchange fees as a decisive move in favour
of competition and transparency in the payment card market.
The deal reached
between the EU Presidency and the European Parliament negotiators concretely
means that interchange fees (i.e. fees which are charged by banks belonging to
card schemes such as Visa and MasterCard for payment card transactions) would
be lowered for consumer debit and credit card transactions and more
transparency would be provided on the calculation of the fees.
"Lower interchange fees and more transparency
will bring more competition on the card market, therefore lowering business
costs and enabling for lower prices. This is a win-win result for both
consumers and businesses” commented Mr. Christian de Barrin, CEO of
According to the
agreement, payment card transactions would be capped at 0.3% of the transaction
value for consumer credit card transactions and at either 0.2% of the
transaction value or a fixed fee of at most five cents per transaction for
debit card transactions. However, for domestic debit card transactions, a
transitional period of 5 years will be implemented during which the cap would
be of 0.2% to the annual weighted average transaction value of all domestic
transactions within the card scheme. However,
the agreement excludes from the scope of the cap the fees for commercial cards
and three-party schemes.
agreement now needs to be endorsed by the ECON Committee and the plenary
session of the European Parliament, before a final approval by the Council.
HOTREC represents the hotel, restaurant
and café industry at European level. This industry includes around 1,8 million businesses, of which 99% are small and
medium sized enterprises (91% of them micro enterprises, i.e. employing fewer than 10 people). These businesses make up
some 59% of industry value added. The hospitality industry provides some 10.2 million jobs in the EU alone.
Together with the other tourism industries, the sector is one of the largest
industries in Europe. HOTREC brings together 42
national associations representing the sector in 27 different European
PRESS CONTACT: Alexis Waravka, Public Affairs Manager, +32(0)2 513 63 23, email@example.com