Senior retail executives urge strong action on payments

Brussels, 1 December 2009 - Today 70 senior finance executives from European and worldwide retail companies and associations came together to debate the future of payments in Europe. At a high-level conference organised by EuroCommerce, merchants voiced support for the single euro payments area project (SEPA) but stressed that its success depends on decisive EU action against unfair card fees.

The mandate of Competition Commissioner Neelie Kroes is coming to a close but European retailers are still pressing for some key decisions from her team. Paramount is the abolition of the unfair principles behind interchange fees for both debit and credit cards. Following the 2007 decision against MasterCard, EuroCommerce calls for the same strong decision against Visa. 

 

"What merchants most fear is that SEPA will lead to cheap, efficient national debit schemes being taken over by Maestro and V Pay. These brands are more lucrative for banks but much more expensive for retailers and shoppers. This has already happened in several EU countries. If it becomes the rule, SEPA will bring a huge step backwards, at the expense of consumers." said Xavier Durieu, EuroCommerce Secretary General.

 

Interchange fees constitute a huge, totally unjustified and opaque cost for all retailers, and consumers. Because retailers pay for 'services' from which they do not benefit, the interchange leads to ever increasing prices and removes the incentive for banks and schemes to combat fraud.

 

And to the further peril of SEPA, argue retailers, the interchange fee prevents the entry of new players onto the market.

 

 

"It is an outrage that card schemes and banks are still allowed to blatantly violate competition law", continued Durieu.  "SEPA for cards promised transparency, increased competition and better prices: in these crucial times for the EU economy, this is what our leaders must deliver."

 

SEPA is the initiative to standardise payments in euro across all EU member states. Up to now, it has been led by banks only, but the European institutions are increasingly aware that, without the involvement of end-users, SEPA can only be a failure.

 

Cécile Grégoire
Senior Adviser on Payment Systems
T:+32 2 737 05 86
gregoire@eurocommerce.be