World

EU to Cap Debit, Credit Card Fees at .3 Percent of Transaction

Retailers support it, banks oppose it

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Plans to cut transaction fees on debit and credit cards in the European Union have been published—but there is disagreement over the potential impact.

The European Commission estimates that the EU payment market is worth 130bn euros (£112bn) but is "fragmented and expensive".

It wants to cap "interchange fees" to a maximum of 0.3% of a transaction.

The fees involved are paid by shops and businesses to banks, every time a consumer uses his or her card.