The British Retail Consortium (BRC) is set to release figures showing that banks are taking 'unjustifiably high' fees on credit card and debit card transactions. The figures show that the average credit card transaction costs retailers 34p in bank fees, compared with 8.5p per debit card transaction, and 2.1p for a cash transaction. Given that card payments accounted for 76.7 per cent of all retail spending in 2009, it is clear that these fees are costing British retailers considerable sums each year.
Figures from the BRC show that retailers would make savings £480 million a year if the bank fees for card transactions were the same as for cash transactions. Indeed, retailers are having to pay charges totalling £185 on the average credit card purchases of each adult per year according to the UK Cards Authority and the Office for National Statistics. The UK Cards Authority defended the charges, saying that card issuers had to cover costs such as the interest free period on new credit cards and fraud protection systems.
The legality of these fees has been challenged in Europe, with the BRC hoping that the European Commission's 2007 ruling that MasterCard's cross border interchange fee was unlawful may serve as a precedent.
BRC Hits Out at High Bank Fees on Retail Transactions
Financial Services > e-banking > Banking news
BRC Hits Out at High Bank Fees on Retail Transactions
Wed, 16 Jun 2010
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