EU moves to cap credit card fees

(BRUSSELS) - The European Commission wants to cap fees on credit and debit-cards across the European Union, draft legislative proposals showed on Wednesday.

According to the text from the planned law seen by AFP, Brussels wants to apply a 0.2-percent ceiling on debit-card interchange fees and a 0.3-percent limit on credit-card fees as well as electronic and mobile payments.

These fees, rarely noticed by shoppers, are paid by the banks involved in a credit card transaction and are then charged to the retailer.

But the commission believes fees paid by businesses are then passed on to consumers.

The Commission, the EU's executive arm, has long sought to rein in the fees and has suspected credit card operators such as MasterCard and Visa Europe of anti-competitive practises.

The Commission said the caps chosen were "reasonable benchmarks that are practical for the card schemes and banks and also provide legal certainty."

Commission estimates suggest the caps would almost halve the total fees levied, which now vary widely between member states.

Commission legislative proposals require the backing of EU member states and the European Parliament before they can become law.