Fine Gael Dublin Senator and Seanad spokesperson for European Affairs Catherine Noone has today welcomed the proposals which are due to be tabled by the European Commission on Wednesday which will see a European-wide cap being imposed on card fees of between 0.2% and 0.3% of a given transaction value. Senator Noone said: “These proposals are most welcome by both consumers and businesses alike, many of whom believe that these fees can often be over the top and can lead to transactional barriers. What we need right now is more demand in the economy and, as we know, any barrier which is quashed will help us in that goal.
Senator Noone added: “the proposals, which will see an update to the Payment Services Directive, is necessary following judgements by the European Court of Justice, which have put limits in place on the fees which can be applied by Visa Europe. As such, it is practical to review this whole area and see what solutions can be reached”.
Senator Noone continued: “There are costs involved in credit card processing of course, but I feel that with the increasing success of technology aimed at decreasing the amount of credit card fraud (an area which Irish companies such as Trustev are succeeding in), that this cap on fees will still more than cover the cost of card companies doing business”.
Senator Noone concluded: “This is a move which is pro-consumer and pro-business. According to the European consumer group BEUC this should work as a catalyst for the entry of new market players and increase consumers’ access to cheaper and more secure payment means, which I entirely agree with. There are a great many reasons why this is a good idea, and I am glad to see Europe once again putting forward smart regulations which will make consumers lives better”.