Interchange Fee Regulation—timeline
Interchange Fee Regulation—timeline

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Interchange Fee Regulation—timeline

The Interchange Fee Regulation (an EU regulation on interchange fees for card-based payment transactions) ((EU) 2015/751) (the IFR) was enacted in response to the perceived anti-competitive effect of fees paid by merchants to banks for accepting payments made using credit or debit cards. The IFR imposes a cap on such fees and introduces a set of business rules aimed at prohibiting anti-competitive behaviour. It aims to increase competition, lower prices for consumers and increase opportunities for new entrants into the payments market. The IFR entered into effect on 8 June 2015.

The IFR imposes caps on interchange fees for consumer credit and debit card transactions. With respect to consumer debit card transactions, the IFR provides that payment services providers may not offer or request a per-transaction interchange fee of more than 0.2% of the value of the transaction.

As for domestic consumer debit card transactions, EU Member States may opt either to:

  1. impose a fee cap lower than 0.2% and impose a fixed maximum fee amount, or

  2. permit per transaction interchange fees of no more than €0.05, which can be combined with the 0.2% cap, as long as the sum of the interchange fees of the scheme does not exceed 0.2% of the total annual value of the relevant transactions

Additionally, until 9 December 2020, Member States may allow for the application of a weighted