The British Retail Consortium has welcomed the European agreement to cap the “anti-competitive” cost of processing debit and credit card payments.
BRC members have campaigned for a reduction in the fees which cost UK businesses £1bn a year and feel the reform will provide more competition and innovation in the payments system for the benefit of businesses and consumers.
It is calling on the Payment Systems Regulator to make this law in the UK immediately.
The agreement states that fees paid by European retailers to process non-cash transactions will be capped at 0.2% for debit cards rates and 0.3% for credit cards under new laws set to come into force by autumn 2015.
Helen Dickinson, director general of the British Retail Consortium, said: “We have long campaigned for a cap on excessive and anti-competitive card payment fees. Once implemented in the UK during the course of 2015 this will enable the retail industry to invest an extra £500m a year in innovation and value for consumers.”