EU launches card fee crackdown

The European Commission plans to lower retailers’ costs for accepting debit and credit card payments in a renewed challenge to dominant players such as Visa and MasterCard, a green paper revealed yesterday. Retailers typically pay a fee to card issuers to cover costs, such as authorisation for transactions.

The EU paper stated the high processing fees banks charge prevent the development of low-cost schemes. It aims to increase competition in the cards market, thus boosting online commerce.