In two years, interchange fees between credit card companies and merchants will be capped in the EU: credit card fees at 0.3% and debit card fees at 0.2%.
A good day for merchants, yes, but the concern is more for the consuming public who will inevitably have to cushion the gap for card networks, who, according to the predictions of some financial institution, might have to pay an extra £11 per year and an extra £25 per year with credit cards to make up for it.
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While the cap, currently, applies to card-present contexts only, we do speculate about if and how this might affect online merchants and online shoppers in the future. Given the number of intermediaries in-between credit card companies and merchants, the prospects for e-merchants are not promising, but not impossible either. For now, merchants will need to cut costs through better negotiation with processing companies.