Call for urgent amendment in EU card fee regulation

The BRC's European umbrella body, EuroCommerce, has written to the European Commission (log-in to view) pressing them to act to address the growing problems facing retailers and wholesalers due to the limited scope of the current Interchange Fee Regulation (IFR).

It follows an earlier letter to Commission Executive Vice-President Vestager, and asks for the Commission's report on the application of the IFR, due to be published in the coming weeks include proposals to amend the legislation.

Card schemes have been steadily increasing the fees imposed on retailers which the IFR does not cover. Data provided by a global payments consultancy CMSPi, indicates that since 2018 one card scheme increased its fees by 150%. This and other fee increases are estimated to cost EEA merchants an additional €794 million every year, substantially reducing the intended benefits to merchants and consumers, of the IFR.

Eurocommerce also issued a press release (log-in to view) setting out the problem and the solution we were seeking. The letter was accompanied by a legal opinion (log-in to view) from a distinguished academic expert and senior counsel in European competition law putting our arguments forward and to highlight to the Commission that further action could, and should, be taken.

The SME Envoys Network has also been given copies of the letter and supporting document and, given the impact on small merchants, asked to act with their national authorities.