European Union has announced that Mastercard and Visa agreed to lower fees assessed to merchants when they accept debit or credit cards issued outside Europe.
According to The Wall Street Journal, both companies made offers to lower interregional interchange fees by a minimum of 40%. The fees are applied to payments made in the EU and three other European countries with cards issued outside of the region.
Under the proposals, interregional interchange fees would be capped at 0.2% of the transaction value for debit cards and 0.3% for credit cards when carried out in person. Fees for online purchases would be capped at 1.15% for debit cards and 1.5% for credit cards.
As the publication reports, the European Commission plans to test the proposals in the market before they become permanent, and the new rates would go into effect six months after that decision is made. The commitments would be effective for 5.5 years.