Interchange fee regulation: a consultation

Interchange fee regulation: a consultation

The Interchange fee regulation consultation invites views on the government’s proposed steps to comply with the ‘Interchange Fee Regulation’ (IFR) that the European Union agreed to bring in across all EU countries earlier this year.

Interchange fees are the charges paid by businesses/retailers when a customer pays for a product using their debit or credit card. The ‘Interchange Fee Regulation’ will place a cap on these fees from 9th December 2015 at 0.30% and 0.20% for credit and debit card transactions respectively. At present, credit card interchange fees in the UK are typically around 0.85% per transaction.

In response, ACS supports the EU’s adoption of ‘Interchange Fee Regulations’ (IFR) to cap credit and debit card charges at 0.3% and 0.2% respectively per transaction to reduce costs for retailers.

The original consultation document can be viewed here: 

ACS' submission: