ONE OF THE FEES banks charge retailers for processing debit and credit cards is being halved from today.
The capping of “interchange” fees could save businesses over €36 million a year, according to the Department of Finance.
The charges do not impact consumers directly, though they might affect them indirectly through higher prices and a reluctance on the part of retailers to accept card payments, the department noted in a statement.
The maximum fee for domestic debit card sales is being set at a weighted average of 0.10% of the transaction value, half the current level, while the maximum for domestic credit card transactions is being cut to 0.30%.
Call to end ‘minimum spend’
Minister for Finance Michael Noonan said the measure, which was first announced in Budget 2016, will reduce the cost to retailers who accept card payments.
Noonan also called on retailers to now remove the “minimum spend” on cards.
“We are all familiar with outlets who will not accept card payments under €10 or in some cases €5,” he said.
“Retailers should be aware that most shoppers have a contactless card in their wallets which can be used for transactions up to €30,” Noonan added.
It is cheaper and faster than any other way to pay, both for the retailer and the consumer.
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