Labour MEP backs credit card fee capping

MEP Marlene Mizzi welcomed an overwhelming vote in the European parliament on the proposal to cap fees on credit card payments, a move that positively affects both businesses and consumers

The fees credit card companies charge merchants amount to millions and fees are usually factored in prices and passed on to the consumers. Mizzi, an entrepreneur by profession and Vice President of the Committee of Economic and Monetary Affairs of the European parliament, said that she was pleased that it was her political group, S & D, that negotiated this deal .

”The use of payments by card should benefit retailers and consumers and thereby facilitate the creation of a unified, transparent and competitive EU market. Regulations should avoid the use of different approaches throughout the member states as these tend to be to the detriment of consumers.

“This new law will be a step forward to increase transparency in the use of credit or debit cards. For instance, it will apply a capping the fee on transactions with a credit or debit card at 0.3% and 0.2% respectively.

“The introduction of limits in the EU would mean, in addition to lower prices, savings of up to three billion euros per year for large retail chains or up to six billion euros in operating costs. We have to remove the existing restrictions and harmonise practices. The mere harmonisation of costs between member states will save customers in the €731 million a year. A single practice will open up a variety of innovative payment options”.