Visa Europe has proposed to reduce its cross-border credit card payment fees and reform its rules after an investigation by the EU Commission.
Visa has offered to lower the inter-bank charges to 0.3% of a transaction value – a reduction of about 40%-60%. A market test will be carried out before it is made compulsory.
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In July 2012, the Commission filed a statement of objections to Visa that its inter-bank fees for consumer credit cards violated EU antitrust rules and limited cross-border competition.
Vice president of the EU Commission Joaquin Alunia, said: "Given the importance of card payments for European consumers and businesses across the Single Market, putting an end to restrictions of competition in inter-bank arrangements is a key priority for the Commission. The decision by Visa is a major step forward in that direction."
In 2009, MasterCard established a similar fee reduction with the EU, however new proceedings have now been opened against it.
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By GlobalDataEC targets Visa Europe on interchange
European Commission investigates MasterCard inter-bank fees
