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
15 Apr
GEN
Beklager Drama .. jeg orker simpelthen ikke dit barnlige og løgnagtige pjat. Men at starte en ny trå..
19
18 Apr
VWS
Der har ikke været skrevet meget om hvad det nye MHI Vestas JV vil i Kina. Det har været nævnt kort ..
14
16 Apr
TOPO
Jeg ser et par forskellige dynamikker udspille sig:   1) Hvad er fusionspartneren, Bioalliance, reel..
14
14 Apr
VELO
Det er ikke en gåde. På mødet i marts fik Veloxis de obligatoriske 180 dages spørgsmål. I det sekund..
10
16 Apr
VWS
Vestas får jo ordrer på 13-14% af alle verden vindmølleprojekter, så alene derfor kan det jo ikke væ..
9
18 Apr
VWS
Den overvejelse vil jeg i bedste fald kalde irrelevant. For det første er længder af kyststrækninger..
8
17 Apr
YHOO
Yahoo! har mildest talt levet en omtumlet tilværelse. Selskabet har slet ikke formået at udnytte sin..
8
14 Apr
 
Bølgerne har tidligere herinde gået højt om det efter nogles menings ligegyldige (worst case: ødelæg..
8
14 Apr
FING-B
Sæt Jer nu ind i sagen - både din kone + dig selv, XO / keep-it../div. nicks.   Dagens udmelding fal..
8
18 Apr
PEIX
Lige et charts der forklarer det første spørgsmål:   http://www.allendale-inc.com/wp-content/uploads..
7

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
No data found.
Euroinvestor around the globe: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014   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.
 
21 April 2014 05:32:33
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20140324.1 - EUROWEB3 - 2014-04-21 06:32:33 - 2014-04-21 05:32:33 - 1000 - Website: OKAY