Card giants Visa and MasterCard have come to an agreement with the French competition authority to cut card fees in the country by almost half.
The French Competition Authority announced the deal after pressure from European Commission that banks and payment firms limit the fees they charge on card payments.
Go deeper with GlobalData
As a result of the deal both Visa and MasterCard will be capped at charging merchants a maximum of 0.28% of the total cost of the transaction to process a payment.
This amounts to a 49% reduction on MasterCard’s current average and a 44% fall on Visa’s charge.
According to The French Competiton Authority the card companies will also reduce cash-machine fees to 0.55 euros ($0.74) per withdrawal from 0.75 and 0.60 respectively.
The French banks have been criticised by both the French banking watchdog and the EU over their interbank fees, which are among the highest in Europe.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRelated articles:
SocGen merchants accept UnionPay cards in France and Monaco
France is Europe’s top card fraud victim
Gemalto, Crédit Agricole finally roll out contactless cards across France
