Brussels, 16/10/2000 (Agence Europe) - After an in-depth investigation, the Commission is prepared to accept certain provisions in the Visa International payment card system, system which was notified to it in view of obtaining an exemption to the ban on agreements. One of these provision is the rule of non-discrimination which bans traders billing their clients a surcharge when then pay with a Visa card. A Communication will be published in the Official Journal over this issue in order to enable the interested third parties to put forward their observations before the Commission makes a final decision. A favourable decision would also be taken with regard to the modified Visa rules on cross border services. Initially these rules did not authorise the affiliated members to hand out cards abroad nor to affiliated traders in other Member States, unless in a limited measure. In the framework of a widening in the scope of its cross border activities, Visa International now authorises these activities since May, without the prior creation of an branch or subsidiary in the country concerned as was previously the case. The Commission foresees to reach a formal decision over these two points before the end of the year.
The Community executive decided, on the other hand, to send a statement of objections to Visa concerning the interbanking commission that it applies as a motive that this constitutes a restrictive agreement for price fixing, contrary to competition rules. A complaint had been made on this issue by Eurocommerce, an association representing European retailers, complaint, which denounced the Visa practices as well as those of other payment systems. The commission, set by Visa in the framework of the agreements concluded between member banks, is paid by the cards holders bank for each transaction carried out using it, amount it passes on to its clients, namely retailers. It totals on average 80% of the total amount paid by the retailer to his bank each time he accepts a payment made with a Visa card. The Commission feels the Visa had not put forward any convincing arguments to demonstrate that this practice fulfils the cumulative conditions for an exemption of the applicable European competition rules and notably that it would be necessary to the functioning of the system, noting that other payment card systems work without interbanking commissions. A final decision should arise on this issue in the first quarter 2001, in order to leave the possibility for the company to answer the complaints and call for a possible hearing. The Community executive is, furthermore, referred several other cases concerning payment card systems posing similar problems and the decision it will make will act as indicators as to the line to follow in other cases.