The results of a Europea Union (EU) inquiry into debit and credit cards was welcomed by UK retailers as a clear signal that shoppers and retailers are getting a bad deal from the payment card market.
The British Retail Consortium says the European Commission’s inquiry into the sector, published on Wednesday last week, backs its case that there is a lack of competition in the card sector, and fees paid on each transaction are an unjustifiable tax on customers, BRC Director General Kevin Hawkins. “The report sends a clear signal to member states, including the UK, that consumers and retailers have been bearing the costs of that abuse. We’ve long argued that high charges are an unjustifiable tax on consumers leading to excessive profits for the banks. The Commission’s findings strongly back the BRC’s position in the OFT case against Mastercard and Visa. The OFT must acknowledge them and press ahead quickly to bring an end to the anti-competitive behaviour that has gone on far too long.”