THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Retailers welcome landmark proposal to cap card processing fees

UK retailers have welcomed a landmark proposal by the European Commission to cap fees charged by banks for the use of credit and debit cards.

GENERAL MERCHANDISE

Retailers welcome landmark proposal to cap card processing fees

UK retailers have welcomed a landmark proposal by the European Commission to cap fees charged by banks for the use of credit and debit cards.

The commission has proposed new regulations to cap interchange fees, which retailers pay to card schemes and banks to process payments customers make using credit and debit cards. These currently vary from 0.1% to 2.5% and cost UK retailers £850 million a year.

The British Retail Consortium has been campaigning for a decade for a cap in the fees, which are absorbed into retailers' costs. The average charge for credit cards is 0.9% of the transaction, but the legislation would cap these fees at 0.3% and debit card fees at 0.2%.

The cap will apply initially to cross-border payments, rolling out to UK rates within two years.

Helen Dickinson, BRC director general, said: "We're delighted with this landmark proposal. Capping these excessive and anti-competitive fees will support the UK retail industry by £362 million a year, boosting the industry's ability to invest and innovate while continuing to deliver lower prices and value for customers.

"While this is great news, there is a real opportunity for the Government to go further and faster by making more substantial and immediate cuts through the proposed economic regulator for payments – this means that UK consumers could benefit much more quickly."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process