Brussels, 20/04/2015 (Agence Europe) - On Monday 20 April, the Council of the EU definitively approved the rules capping multilateral interchange fees (MIF) for instant debit and credit card payments (see EUROPE 11271).
For all credit card payments, the ceiling has been set at 0.3% of the value of the transaction.
For all debit card payments, the ceiling has been set at 0.2% of the value of the transaction. However, for small national payments, the member states may, under certain conditions, authorise an MIF per transaction equal to or less than 0.05 euros in conjunction with the 0.2%. And during a transitional period of five years, they may apply the 0.2% cap on the basis of the annual weighted average of all domestic debit card transactions within each payment scheme.
These provisions will apply six months after the regulation enters into force. The MIFs will be paid by the bank of the trader to the bank of the holder of the payment card used for the transaction. Further provisions of the regulation aim to increase competition by making it easier for newcomers to enter the market. (Mathieu Bion)