The European Commission (EC) will reportedly propose a 0.2% cap on all credit and debit card transaction fees sometime next week.
According to a document obtained by The Financial Times, the cap will initially apply to cross border transactions, with domestic payments eventually being covered after two years.
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The proposed cap will reduce debit card transaction fees from $6.3bn per year to $3.2bn, estimates the EC.
Credit card transactions fees will drop from $7.4bn to $4.6bn per year.
Fee rates across Europe will also be evened out by the proposal; fees currently vary from 0.1% in Denmark to 1.6% in Poland.
The EC document stated: "The achievement of an effectively functioning internal market in the area of payment cards has been hindered by the widespread application of certain restrictive business rules and practices."
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By GlobalDataCard giants Visa and MasterCard have already been forced to cap their interbank debit and credit card fees after the EC launched investigations regarding antitrust rules.
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