The European Commission have announced that Visa Europe is capping the transactions fees it charges, curbing what is a significant money earner for banks behind the payment scheme.
The decision has come as a result of a series of antitrust probes by the European Commission triggered by perceived issues with the payments company.
It’s a victory for retailers and the Commission, which had pushed for reduced fees on credit and debit cards after announcing the cost to business in Europe annually was 10bn ($13.7bn).
Visa Europe’s inter-bank credit card fees will be capped at 0.3% – the same level as MasterCard.
"The cap on inter-bank fees for Visa Europe’s credit cards and the commitments ensuring cross-border competition are excellent news for European consumers, since the fees paid by retailers end up on their bills," said EU Competition Commissioner Joaquin Almunia.
The move represents a setback for Visa Europe but the company said it would now be able to put the issue behind it.
"Visa Europe will continue to focus on developing and providing payment solutions for the benefit of consumers, rather than pursuing lengthy legal cases," Visa Europe CEO Nicolas Huss said.