The European Regulation on Interchange Fees for Card Based Payment Transactions has just been published in the Official Journal of the European Union.

The Regulation will come into force on, and apply from, Monday 8 June 2015, save that:

  • Articles 3, 4, 6 and 12 will apply from 9 December 2015; and
  • Articles 7, 8, 9 and 10 will apply from 9 June 2016.

Articles 3, 4, 6 and 12 will begin the process of capping interchange fees for consumer debit and credit card transactions. They will also cover licensing, and the provision of information to payees on individual card-based payment transactions.

Articles 7 will require the separation of payment card scheme entities from processing entities.

Articles 8, 9 and 10 will prohibit the use of provisions that hinder or prevent a card issuer from cobadging different payment brands on a card-based payment service; require information to be “unblended”; and prohibit the application of honour all cards’ rules.

Our client alert, which gives more detailed information about the Regulation is available here.