The European Parliament this week voted 621-26 to cap the interchange fees for credit and debit cards. Effective October 1st, interchange fees will be capped at 0.2% of the transaction value for consumer debit cards and at 0.3% for consumer credit cards.
The new rules are not applicable to American Express or Diners or will so-called “three-party” card programs. Commercial cards used only to pay business expenses will also be exempt.
The European Commission estimates the new rules could reduce fees for consumer payment cards by approximately US $6.4 billion.
The new rules must still be approved by the EU Council which is expected to take place within the next three months.
In its MasterCard judgment of 11 September, the European Court of Justice made clear that such interchange fees are a violation of EU antitrust rules.
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