The Council of the European Union (EU Council) has published presidency compromise texts on the proposal for a Regulation on interchange fees for card-based payment transactions (MIF Regulation):
The MIF Regulation aims at regulating interchange fees, which are passed onto merchants in the fees charged by acquiring payment service providers for every national or cross-border card transaction.
What this means for you
In its compromise texts, the EU Council proposes that with effect from 6 months after the entry into force of the MIF Regulation:
- payment services providers should not offer or request a per transaction interchange fee of more than 0.2% of the value of the transaction for cross border debit card transactions
- for domestic debit card transactions payment card schemes should ensure that payment services providers do not offer or request a “weighted average interchange fee” of more than the equivalent of 0.2% of the annual average transaction value of all domestic debit card transactions within each payment card scheme, or a per transaction interchange fee of more than 0.2% of the value of the transaction
- payment service providers should not offer or request for any credit card transaction a per transaction interchange fee of more than 0.3% of the value of the transaction. For domestic credit card transactions, Member States may define a lower per transaction interchange fee cap.
The negotiations between the EU Council, the EC and European Parliament in respect of the MIF Regulation are ongoing (and are still in line with PSD2), but the EU Council has proposed interesting amendments to the timings for the implementation of the caps.
In its original draft of the MIF Regulation, the EC set caps of 0.2% and 0.3% for cross-border consumer debit and credit transactions, for entry into force 2 months after publication of the MIF Regulation. Caps for interchange fees of 0.2% and 0.3% for all domestic consumer debit and credit transactions were to apply 2 years after publication of the MIF Regulation. The EU Council is proposing to shorten these time frames.
It will be interesting to follow the trialogue negotiations between the EU Council, the EC and the European Parliament over the coming months.