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BRC anticipates victory as Visa card investigation launched
An EU investigation into fees levied by Visa is good news for customers and retailers and could be the next victory in the British Retail Consortium's gritty campaign against the excessive charges.
The British Retail Consortium (BRC) said it had been waiting for this Visa investigation since a ruling in December that the charges MasterCard imposes on retailers for cross-border credit and debit card transactions are unlawful.The BRC has led the fight aga
The European Commission ruled MasterCard's practice of charging the fee on individual credit and debit card transactions breached EU competition laws. MasterCard was ordered to withdraw the fees within six months or face daily fines. Retailers now want to see a similar ruling against Visa.
BRC Director General Stephen Robertson said: “We applaud the Commission's determination to end this unfair tax on consumers. This has been a long fight for the retail industry and its customers. Card companies have clearly been abusing their position to bolster profits while retailers and their customers bear the cost.
“Since our victory over MasterCard, retailers all over Europe have been waiting for an investigation into Visa's charges. With toughening economic conditions, the need for an end to these excessive, inexplicably calculated, costs is greater than ever. The card companies must understand the days of unjustifiably creaming-off customers' cash are over. Visa must co-operate with the Commission to reach a resolution quickly.
“We applaud the speed with which Brussels is acting on these important issues and urge the UK's Office of Fair Trading to conclude its own investigations into domestic rates as soon as possible.”
This European-level ruling affects charges levied on transactions across the borders of EU countries. In the UK, the OFT is currently investigating fees levied on domestic card transactions. The BRC says the Commission's actions should send a clear signal to the OFT that current practice in the UK is also anti-competitive.
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