The UK government has announced new rules to introduce an EU-wide cap on the charges paid by a business when a customer makes a card payment.
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The new rules, due to be effective from 9 December 2015, form part of the Interchange Fee Regulation that was agreed by the EU earlier this year.
Under the new rules, fees banks can charge for credit card transactions and domestic debit card transactions will be capped at 0.30% and 0.20% respectively.
The Economic Secretary to the Treasury Harriett Baldwin said: "Ensuring the EU has a competitive financial services industry that works in the interests of consumers and supports the wider economy is a key pillar of our reform agenda.
"That’s why we are determined to tackle the unfair fees that Britain’s businesses are often charged when their customers pay by card – fees which are often passed on to consumers.
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By GlobalData"And that’s why I am delighted that we reached an agreement to reduce the fees that banks can charge businesses for processing card transactions. I expect businesses to pass on these savings to consumers in the form of lower prices."
In addition, the EU is also set to finalise a revision of the Payment Services Directive (PSDII) to prevent businesses from making money from customers who opt to make card payment.
