Derek Vaughan MEP

Working hard for Wales in Europe

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New cap on credit card fees to save British businesses and consumers millions

This week the European Parliament voted to make shoppers' lives fairer and cheaper with a cap on credit and debit card transaction fees.

Labour MEPs joined others from across the EU voting in favour of the proposals with a huge majority of 621 to 26. The move will save British businesses some £480 million every year, and, the European Commission estimates it will save consumers across the EU more than £500m.

Welsh MEP Derek Vaughan said: "Every time we use our credit or debit card in a shop, the retailer is being charged for the privilege, the cost of which is added on to the purchases we make.

"It is not a transparent system as customers are not told how much of what they are paying is to cover these fees. What MEPs voted for today was to cap the fee at 0.2% of the overall transaction amount for debit cards and at 0.3% for credit cards.

"Right now the fees charged are around six times as much as the capped amount will be and  by saving retailers money these savings can be passed on to consumers.

"The only people to benefit from the higher rates charged at the moment are Visa and Mastercard, the new clearer fees are a big step in the right direction and I look forward to them coming into effect this September."

Mr Vaughan also said that UKIP voted against the proposals.

"Yet again UKIP MEPs have voted against European action that will benefit British businesses and British people.

"If UKIP had had their way today, costs would have remained far too high for Welsh shopkeepers and shoppers alike."

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