BRUSSELS (Reuters) - The European Commission proposed on Wednesday to cap the fees that banks charge when processing credit and debit card payments.
The rules, which the Commission hopes will widen retailers' acceptance of cards, envisage limiting the fee charged by banks to 0.2 percent on the value of a debit card transaction and 0.3 percent on credit cards. The fee is now as high as 1.5 percent.
The draft legislation will also prevent companies such as airlines from imposing a surcharge when customers pay for flights using certain cards. The Commission said this will save consumers 730 million euros annually.
The cap, which is in line with measures demanded by the Commission's antitrust officials, will apply initially for cross-border transactions - for example, when an Irish card-holder uses their card in France. After 22 months, this limit would be extended to fees on domestic payments on all cards.
(Reporting By John O'Donnell and Foo Yun Chee; editing by Robin Emmott)
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