Is European Interchange Regulation Toothless?

European merchants set to lose out as Interchange Fee Regulation (IFR) savings are eroded: CMSpi look at the impact on the UK - Europe’s largest card market.

IFR legislation was passed on March 10th 2015 by an overwhelming majority of 621 votes to 26. This legislation will see domestic credit card interchange fees capped at 0.3% of the transaction value with domestic debit card transactions capped at 0.2% on a weighted average basis.

If implemented in its entirety, CMSpi estimates that merchants across Europe will save a total of €4.2B ($4.7B) annually, or 48%, on their existing interchange bills, although this will differ significantly by merchant depending on transaction profiles.

It may be easy for mercha ...

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