(14 August 2024 – Europe) The European Banking Federation and Payments Europe have warned the UK government that its plans to introduce a price cap on cross-border interchange fees could risk the integrity of retail banking markets in the EU.
In a letter seen by The Banker sent to UK city minister Tulip Siddiq and the chair of the UK’s Payment Services Regulator, Aidene Walsh, earlier this month, the European Banking Federation and Payments Europe said they had “serious concerns” about the cap, which will impact issuers in the European Economic Area. UK issuers will be exempt.
The letter was in response to a review by the PSR last year, when it proposed temporary caps on consumer credit and debit transactions (of 0.3 per cent and 0.2 per cent, respectively) when made from EEA-issued cards online to UK businesses. The PSR said it planned to introduce a lasting cap on the fees once it had conducted further analysis.
Read the full article at The Banker