Regulation -

EU promise of transparent and competitive payment system under threat

In an unsurprising reaction, the draft European Parliament report on the proposed

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EU promise of transparent and competitive payment system under threat

Regulation on banking interchange fees (MIF) would water down the Commission proposal so that the majority of the potential benefits of a competitive payment system to consumers and to merchants would be lost, says EuroCommerce.

Next week, the European Parliament will discuss the draft report by MEP Zalba Bidegain (EPP, ES) on the proposed regulation on interchange fees (IFs). The amendments it proposes remove significant parts of the reforms intended by the Commission to bring transparency, competition and innovation to the market.

“We must not let the banks and payments lobby hijack this debate. The barriers of the interchange fee must be removed to allow for competition and innovation,” says Christian Verschueren, Director-General of EuroCommerce.

“We call on Europe’s decision-makers not to be swayed by the scaremongering messages from banks and card schemes, and to have the courage to stand up for a competitive, cost-efficient, secure and transparent payments market which will bring great benefits to the EU economy as a whole. Consumers in Europe deserve it.”

“The amendments (details hereunder) that are being proposed would perpetuate a system where all consumers, whether they use cards, or cash, and even those without bank accounts, would end up paying higher prices for their goods and the rewards they deliver to their users,” continues a press release. “They would allow schemes to continue to impose rules on merchants which they cannot negotiate.”

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