EU to cut card fees, which is good news for all!
Millions of us look like we're going to benefit from plans by the EU to cut transaction fees on debit and credit cards. These fees are paid by retailers and businesses to banks every time someone uses their card.
The EU proposals involve a potential cap on what are called "interchange" fees.
Businesses pay different interchange rates to the banks, but on average, debit card transactions cost the retailer around 0.2% of the bill, with credit card transactions costing more, at around 0.9%.
New plans want to cap debit card fees at 0.2% and credit card fees at 0.3%.
"It's hugely significant, and massively positive," said Richard Braham, head of payments at the British Retail Consortium (BRC). "There's definitely more that can be done, on a domestic level, to reduce the exorbitantly high fees."
This is under the assumption that retailers will pass on these savings. And the banks aren't happy, saying that they stand to lose about £1.2bn worth of revenue.