On 29 June 2020, the European Commission published a report on the impact of interchange fees for card-based payment transactions which entered into force in June 2015 (the Interchange Fee Regulation (IFR)).
The IFR required the Commission to report by mid-2020 on the operation of the IFR and on whether the maximum caps should be adjusted.
The report concludes that the main objectives of the Regulation have been achieved, as interchange fees for consumer cards have decreased, leading to reduced merchants’ charges for card payments, and ultimately resulting in improved services to consumers and lower consumer prices. In addition, market integration has improved through the increased use by merchants of acquirers (banks servicing merchants) located in other member states (cross-border acquiring services) and more cross-border card transactions.
The Commission has found that further monitoring and reinforced data gathering are necessary in some areas, including those where only limited time has elapsed since the Regulation entered into force.
Given the positive impact of the IFR and the need for more time to see the full effects of the Regulation, the Commission is not proposing to revise the IFR for the time being.