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.
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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.
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By GlobalData"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.
