After long disputes with the European Commission (EC), international payment systems like Mastercard and Visa agreed to reduce the interregional interbank commission in the European Union. It is noted that payment systems will reduce their multilateral transaction fees for payments on credit and debit cards issued outside the EU by an average of 40%.
The European Commission said that such a reduction in commissions would lead to lower prices for doing business with European retailers, which in turn should lead to a general reduction in prices for tourists traveling in the European Union.
After the conclusion of a new agreement, the commission for all cards issued outside the EU will be significantly reduced. According to new agreement, when paying by debit card, the buyer will pay a commission of 0.2%. In turn, when calculating a credit card, the amount of the commission will be 0.3%.
These innovations will come into force on October 19, 2019 and will be valid for five years. It is assumed that such a move will reduce the final prices for goods and services for all consumers in the EU, since retailers include an interregional interbank commission in the cost of their products.