Europe set to have cap on credit card fees

The European lower house (European parliament) voted this month to cap credit card fees to 0.3% and debit card fees to 0.2% of the transaction value (or 6p if lower). These caps would apply across Europe. Research has shown that a cap in fees could provide retailers with nearly £5 billion in savings and lead to lower consumer prices. However, the upper house (Council of Ministers) has to concur before such caps can become law.

Each year businesses suffer from unregulated and unjustifiably high fees when a customer chooses to pay by card.  Capping these transaction fees will mean businesses can and should be able to pass on savings to consumers, which will directly benefit households across Europe and contribute to economic growth and consumer confidence.

As the Party of In, Liberal Democrats want to strengthen and protect our vital trade links with the rest of Europe. By cutting unnecessary costs for businesses Britain can increase its competitiveness within the world's largest single market - Europe.