New Cap On Credit Card Charges Could Mean Less Costs For Customers

NEW CAP ON CREDIT CARD CHARGES COULD MEAN LESS COSTS FOR CUSTOMERS

Consumers and retailers should benefit from new EU rules that will cap the fees banks charge retailers to process shoppers’ payments across the EU.

The European Parliament this week voted in favour of capping the fees for both debit and credit card transactions.

It is hoped the reduced fees will lead to lower prices for goods and services.

Sinn Fein MEP Matt Carthy says the new law, which will come into force next year, is good news for both retailers and consumers.

“There will not be a cap of 0.2 percent of any transaction value in relation to debit cards, and 0.3 percent in relation to any credit card transaction” he said.

“Now this provides certainty and it provides (a) level playing field”.

“It also allows member states – including Ireland if we wish – to adopt lower transaction fees”.

“What it should mean, in effect, is that customers should be able to use their debit or credit card in time without experiencing any fee being applied by the retailer” he added.

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