Visa cuts swipe fees in Europe, raises American rates

Arlington, Va. The Retail Industry Leaders Association said Tuesday that Visa Europe’s just-announced settlement with European Union regulators capping interchange fees on debit transactions paid by European retailers is a settlement that should be echoed here in the United States.

However, according to RILA, the settlement likely foreshadows further Visa increases on the fees paid by American retailers unless Congress acts soon on debit interchange reform.

In Monday’s announcement, Visa Europe agreed to cap debit-card interchange rates at 0.2% for four years. In the United States, according to RILA, the Visa debit-card interchange rate rose nearly 30% in April to 0.95% plus $0.20 for every transaction. 

“While most western economies have taken action to rein in excessive debit card swipe fees, here in the United States the credit- and debit-card industry continues to hurt retailers and consumers by setting rates indiscriminately and raising rates at will,” said John Emling, senior VP for government affairs, RILA. “Without interchange reforms in the United States, reform in Europe means the credit card industry will look to American retailers and consumers to make up lost revenue.”

“While most western economies have taken action to rein in excessive debit card swipe fees, here in the United States the credit- and debit-card industry continues to hurt retailers and consumers by setting rates indiscriminately and raising rates at will,” said John Emling, senior VP for government affairs, RILA. “Without interchange reforms in the United States, reform in Europe means the credit card industry will look to American retailers and consumers to make up lost revenue.”