New cap on interchange fees comes into force today
From today (9 December 2015), new regulations come into force which set a cap on the interchange fee for card transactions. Interchange is a fee paid by the retailer's card acceptance provider to the consumer’s card issuer each time a card payment transaction occurs. The new rules caps this fee at a weighted average of 0.2% of the value of the transaction for consumer debit card transactions and a flat 0.3% for consumer credit card transactions.
As the UK is the largest card market in Europe, we welcome the government’s measured application of the regulations and echo its calls for any savings to be passed on to consumers in the form of lower prices.
Find out more information about interchange fees and the new regulations here.