The European Regulation on Interchange Fees for Card-Based Payment Transactions (the Regulation) has been formally adopted by the European Parliament and Council, and is expected to come into force later this year.
The Regulation will restrict the interchange fees that payment service providers (PSPs) are lawfully permitted to charge on debit and credit card transactions, to 0.2% and 0.3% of the value of the transaction, respectively. It also introduces new requirements for PSPs that are intended to enhance consumer protection, increase competition, and (re)establish the internal market in this area.
The Regulation will apply to all card-based payment transactions carried out within the EU, where both the payer and the payee’s PSPs are in the EU, but it will not apply to commercial card transactions and ATM withdrawals.
Our client alert takes a detailed look at the agreed text of the Regulation, and the new obligations that PSPs and payment card schemes will be obliged to meet, after the Regulation comes into force.