The European Parliament has just voted in a plenary session to adopt the proposed Regulation on Interchange Fees for Card-Based Payment Transactions.

The Regulation will now go to the European Council for formal endorsement, before being published in the Official Journal of the European Union.

The Council’s formal endorsement is almost certain to occur, because the Council has already informally agreed the final text as part of the trilogoue process.

The Regulation will come into force 20 days after it is published in the Official Journal.

The key provisions in the Regulation, which cap the fees that banks can charge retailers for processing shoppers’ payments, will come into effect 6 months after the Regulation comes into force. The balance of the Regulation will start to apply to firms 6 months after that.

The fee cap will apply to cross-border and domestic card-based payments. The European legislature believes that the Regulation will cut costs for card users; enhance fee transparency and stimulate competition in the card-based payment sector.

Our client alert, which summarises the effect of the Regulation is available here.

The European Parliament’s Legislative Observatory procedure file is available here.

The latest version of the text of the Regulation is available here.