Payments consultancy CMSPI has said the potential cost savings from European interchange fee reforms are being undermined, due in part to scheme fee hikes and acquirers failing to pass on savings to merchants.
A paper produced by the company, which assists merchants in seeking reductions to card acceptance costs and has long lobbied for tighter controls on card networks, said the 2015 Interchange Fee Regulation (IFR) promised savings worth nearly €7bn to retailers.
The fees, which are paid by acquirers to issuers whenever a card payment is made, were capped at 0.2 percent of the transaction value for debit cards and 0.3 percent for credit cards.
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