ACS Welcomes Cap on Interchange Fees

ACS has welcomed the introduction of a cap on the fees that banks charge retailers for accepting debit and credit cards.

Interchange fees are charged by a card holder’s bank to a retailer for both debit and credit card transactions. The new rules state that fees will be capped at 0.3 per cent for credit card transactions and 0.2 per cent on debit card transactions.

ACS chief executive James Lowman said: “We are pleased that these limits will now be applied to card transactions as we argued strongly in the EU and at the Treasury that limits were required. Around one in five convenience store customers currently pay by card, with contactless payments also growing significantly over the last year, so placing a cap on retailer’s costs for processing these transactions is necessary for convenience stores.”

The new cap on interchange fees is estimated to save retailers approximately £480million per year.

Under the previous regulations, typical interchange fees ranged from around 8p to 11p per debit card transaction and between 0.77% and 1.5% of the transaction value for consumer credit cards.

This entry was posted by Temp Access on Wed, 09/12/2015 - 11:44