On 26 February 2014, the European Commission announced that it has decided to make legally binding commitments offered by Visa Europe to address concerns about its MIFs for credit card payments in the EEA. Visa Europe has agreed to cut its inter-bank fees for these transactions to a level of 0.3% of the value of the transaction. In addition, it has agreed to measures to address concerns about the effect of its "cross-border acquiring" rules and further measures to improve transparency. The commitments will apply for four years.

What this means for you

The Commission considers that Visa Europe's commitments represent an important step towards the creation of a level playing field in the payments card market and in ensuring the success of the Single Euro Payments Area. Like the MasterCard undertakings, the commitments provide a benchmark for setting MIFs that appears to allow consumers and retailers to enjoy a fair share of the benefits they generate. The commitments on cross-border acquiring and cross-border MIFs come into force on 1 January 2015, but there will be a two year delay before entry into force of the commitments relating to domestic MIFs.