EU Commission investigates Visa Europe charges

by Gill Montia

Story link: EU Commission investigates Visa Europe charges

The European Commission has announced that it will be making a formal investigation into the handling charges made by Visa Europe.

The anti-trust inquiry will look into the fees being charged to card holders for purchases made abroad.

The move follows a warning to Visa’s rival, MasterCard, late last year when the Competition Commissioner gave MasterCard six months to comply with EU regulations or face hefty fines.

The charges cost consumers billions of pounds each year and the Commissioner asserts that the practice inflates prices but provides no benefits.

Visa International reached an agreement with EU anti-trust regulators in 2002, under which it was allowed to continue to apply the fees until the end of 2007, but the agreement was conditional on the charges being reduced over time.

Visa Europe describes the fees as “a mechanism for ensuring the maximum benefit to all who use card payment systems”.

Adding: “Payment cards benefit both retailers and consumers. They help to reduce the costs of cash handling, improve security, speed up transaction times at checkouts, and in addition, for retailers boost their sales.”