Huffpost Money

Visa's Cross-Border Credit Card Fees Under Fire From European Union

Posted: Updated:
Visa's cross-border fees for credit card transactions are being scrutinized by the European Union for hindering price competition between banks.
Visa's cross-border fees for credit card transactions are being scrutinized by the European Union for hindering price competition between banks.

BRUSSELS -- European Union officials say they have informed Visa that they have additional objections to its fees for cross-border card purchases.

The new objections are an extension of an antitrust case initiated in 2008 by the European Commission, the EU's executive branch, regarding such fees for both debit and credit card transactions. In 2010, Visa offered to cap its cross-border debit card fees at 0.20 percent – a commitment the EU made binding. But the case regarding credit cards continued.

On Tuesday, the Commission said it had reached the preliminary conclusion that such fees for credit cards reduce price competition between banks, inflate the cost of payment card acceptance for merchants and ultimately increase consumer prices.

Visa will now have the chance to address the Commission's concerns.

Around the Web

Chapter 9: cross-border payments - Visa

Credit Card Processing Fees & Rates

MasterCard loses card fee challenge, Visa Europe next | Reuters

MasterCard Loses Court Challenge Over Cross-Border Card Fees ...

EU: Visa's cross-border fees hinder competition

Visa Europe Should Match MasterCard Fee Cut, Almunia Says

Visa Beats Estimates as Global Credit-Card Spending Rises

Visa Is Charged Up For The Olympics And Riding The Global Demand For Plastic