The Interchange Fees Regulation

Summary:

The Interchange Fee Regulation is intended to help create a single market for card payments across the European Union (EU). Card payments are particularly important for cross-border and internet payments and so competitive card payments are essential for the development of the internal market. The Regulation will create a level playing field that will allow more competition and spur innovation in payments that is already taking off. The Regulation builds on competition investigations by the Commission and the National Competition Authorities, and in particular the Commission's proceedings against MasterCard and Visa.

It should help the payments industry move on from its old anti-competitive practices with benefits to merchants, consumers and payment providers. The regulation imposes a cap on interchange fees for the most frequently used cards. In addition, the new rules make it easier for merchants to use banks in other EU Member States when they offer a better deal. The regulation also introduces new business rules and transparency requirements to improve market conditions.

Further information:

The Competition Policy Briefs are occasional papers by staff of the Competition Directorate-General of the European Commission about policy issues and key cases.

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