The European Parliament, which noted that card payment fees cost EU retailers more than 10 billion Euros annually, voted to introduce a cap on “excessive fees” retailers’ pay banks to process card payments, to 0.2 percent for debit cards and 0.3 percent for credit cards.
In addition, the vote also removes restrictive rules which force retailers to accept all cards irrespective of cost, with the aim of encouraging more competition between debit and credit card companies.
In a statement, the BRC welcomed the decision stating that the Parliament’s decision would benefit consumers and small businesses as a reduction in fees would create capital to invest in the consumer offer.
Helen Dickinson, director general of the BRC, said: “This is important and positive vote by European politicians. Retailers welcome a clear message that the time for change has come. This sends a strong signal to the European Council and the UK Government to support a more competitive payments system for the benefit of businesses and consumers.”