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Interchange fees State of play

Interchange fees State of play. Payment Systems Market Expert Group 11 April 2014. Where are we in the process of adoption?. European Parliament Council: Council. Responsible committee : ECON - rapporteur : Pablo Zalba – Bidegain (EPP-ES) - ECON report adopted on 20 February 2014

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Interchange fees State of play

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  1. Interchange fees State of play Payment Systems Market Expert Group 11 April 2014

  2. Where are we in the process of adoption? • European Parliament • Council: • Council • Responsible committee : ECON - rapporteur : Pablo Zalba – Bidegain (EPP-ES) • - ECON report adopted on 20 February 2014 • EP Plenary voted on ECON report on 3 April 2014 • Discussions started under Greek Presidency • 1st Council Working Party (CWP): 26 Feb (both PSD2 and IF-Reg) • 2nd CWP: 4 April (IF-Reg only)

  3. EP position – main elements • 318 amendments tabled • Some 30 were adopted • EP endorses the key features of COM proposal and goes further in several provisions: • Interchange fee caps of max 0.2% for debit and max 0.3% for credit cards per transaction supported and reinforced • Separation of scheme and processing, co-branding, choice of application and HACR provisions accepted • Extensions to scope and cross-border acquiring provisions

  4. EP position in more detail (1) • Scope • EP proposes to include not only consumer but also commercial cards of four-party schemes in the scope of the interchange caps • Three-party card schemes excluded from caps if their volume of transactions stays below a threshold to be set by the Commission

  5. EP position in more detail (2) • Interchange caps • In addition to the Commission proposal, additional cap of 7 cents per transaction with a debit card is introduced (= IF of no more than 7 cent for debit card transactions above 35 EUR) • IF caps for cross-border and national transactions to apply one year after entry into force of the Regulation

  6. EP position in more detail (3) • Cross-border acquiring • Interchange fee of the country of the acquirer to apply for c-b transactions (important for non-capped cards) • Co-branding and choice of application • Retailer can set priority choice at the POS, payer able to override it

  7. Council negotiations • First two meetings, initial exchange of views on: • Scope of application (four vs three party schemes, consumer vs commercial cards, multilateral vs bilateral interchange) • Definitions • Interchange fee caps + application time • Greek Presidency: meaningful progress by June State of play: Open discussion on the entire text, no issues closed yet

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