02 August 2012 08:32

EC raises concern at Visa Europe on credit card interchange fees

Visa Europe

European regulators have formally raised concerns that consumers could be paying too much because of fees charged by Visa to process cross-border credit card transactions.

The European Commission told Visa of its concerns about "possible violations of EU antitrust rules" relating to Visa's "multilateral interchange fees" (MIFs) system, which charges retailers for the transactions they handle. 

In a supplementary statement, the Commission says that its preliminary view is that the Visa multilateral interchange fees (MIFs) for consumer credit cards violate its rules designed to stop cartels and restrictive business practices.

The EC says it thinks that MIFs "harm competition between acquiring banks, inflate the cost of payment card acceptance for merchants and ultimately increase consumer prices".

It also "doubts" that Visa's MIFs are "necessary to create efficiencies that benefit merchants and consumers" and could therefore be entitled to an exception from the rules. 

The supplementary statement is the latest stage in a lengthy battle that saw Visa slash its multilateral interchange fees for debit cards in late 2010 but refuse to back down credit cards.

Visa can now make a written reply or ask for a hearing on the issue which could see fines imposed of up to 10% of turnover imposed for antitrust breaches,

Responding to the new development, Peter Ayliffe, CEO, Visa Europe, says: "We are very disappointed that the Commission has taken such a confrontational approach and was not willing to find a solution to support investment and innovation in European payments for the benefit of European consumers and to allow European payments to compete globally." 

In May an EU court dismissed Visa rival MasterCard's challenge against an EC ruling that the firm's cross-border interchange fees for both credit and debit cards violated competition law.

Meanwhile, both card giants are facing interchange problems in the US: having agreed a $7.25 billion class action settlement with retailers earlier this month, several major merchants, including Walmart, have now come out against the plan.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
24 Jul
 
Jeg betaler gerne 16 kr for en kungfu is, 8 kr for en liter diesel, 200 kr for 11 kg gas, 2,5 mil fo..
58
24 Jul
 
Først så tager skattevæsenet  halvdelen af din indkomst.  - Så tager banken 200 kr i kurtage (Udenla..
37
24 Jul
 
Til gengæld er operation ved sygdom gratis....Hvis du overlever ventetiden.   Til gengæld kan du som..
28
24 Jul
 
Ja, jeg er så stolt af at jeg i dette land betaler 46 procent skat for at se at folk der har ondt i ..
23
24 Jul
 
6212's indlæg udstiller hvor uoplyste folk der sidder på den grønne gren er. Det samme gælder de man..
19
19 Jul
I:SP500
Det har ikke noget som helst med aktie bobler at gøre. Markedet reagerer rationelt, en lastbil kører..
18
23 Jul
FING-B
  smartcard: Fingerprint Cards / Lite av Vad som sades av Jörgen Lantoo i går på Conferans Call / Li..
15
22 Jul
 
slut nu Taastrup   Jeg har været med toget en del år.. og det ved du også godt..    Du er en belastn..
15
22 Jul
I:DAX
Han hentyder til hendes "alle er velkommen"politik der giver bagslag. Hvor naiv og hjernedød må man ..
14
19 Jul
 
Efter at have analyseret ca. 1700 amerikanske aktier - udvalgt efter hvilke akiter havde de informat..
14

Rathbones : Form 8.3 - RPC Group Plc

26/07/2016 12:07:29
FORM 8.3 OPENING POSITION / DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of..

Man Group PLC : Form 8.3 - RPC Group plc

26/07/2016 10:39:12
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Rathbones : Form 8.3 - RPC Group Plc

25/07/2016 14:48:24
FORM 8.3 OPENING POSITION / DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
CORRECTION: FAIVELEY TRANSPORT: Organic sales growth of 2.6% over the first quarter of 2016/17
2
Daratumumab Receives Breakthrough Therapy Designation from U.S. Food and Drug Administration in Combination with Standard of Car
3
PCI Biotech receives positive opinion for Orphan Drug Designation of fimaporfin for treatment of cholangiocarcinoma in EU
4
FAIVELEY TRANSPORT: Organic sales growth of 2.6% over the first quarter of 2016/17
5
STERIS plc to Announce Fiscal 2017 First Quarter Financial Results on August 9, 2016

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
26 July 2016 15:07:09
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160725.4 - EUROWEB4 - 2016-07-26 16:07:09 - 2016-07-26 15:07:09 - 1000 - Website: OKAY