Brussels tells Visa credit card fees are too high

The European Union has issued financial firm Visa Europe an antitrust complaint, warning it that its credit card processing fees are "too high."

The EU is objecting to fees for cross-border transactions in Europe, and in-country fees in Sweden, the Netherlands, Malta, Luxembourg, Italy, Ireland, Hungary and Belgium. Last month, an EU court upheld an EU decision to put restrictions on MasterCard cross-boarder transaction fees, which MasterCard said it would appeal.

The Commission said the cross-border swipe fees "harm competition between acquiring banks, inflate the cost of payment card acceptance for merchants and ultimately increase consumer prices," in an emailed statement.

Retailer fees haven't dropped any since 2006, Joaquin Almunia, EU competition commissioner, said a few months ago.

Visa Europe issues around 41% of all European payment cards, and more than 5 million European businesses accept its cards. "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 payment," said Peter Ayliffe, CEO of Visa Europe, said in a statement.

The company's fees limit competition between banks and go against EU rules that forbid cartels and other practices that restrict business.

The EU isn't saying swipe fees are illegal, but that Visa Europe's fees don't help consumers in any way. Also, the EU doubts whether the fees are really needed to help the company run its business.