MasterCard temporarily repeals fees, EU says

[Puffin13]

MasterCard temporarily repeals fees, EU says
13/06/2008 00:00

MasterCard has agreed to temporarily repeal the fees that it applies on cross-border transactions as from 21 June.

BRUSSELS - Bowing to pressure from the European Union, MasterCard has agreed to temporarily repeal the fees that it applies on cross-border transactions as from 21 June, EU officials said Thursday.

While the European Commission had taken "note" of the announcement, a statement from the EU executive said the move should be permanent, unless the company can prove that such fees are beneficial.

"Irrespective of MasterCard's move to temporarily repeal its cross-border multilateral interchange fees (MIFs), the commission will continue to be open to assess any new proposals from MasterCard concerning systems to ensure both efficient payments and a fair share of the benefits for consumers and retailers," said Competition Commissioner Neelie Kroes.

On 19 December, MasterCard was given six months to withdraw the fees - which range from 0.4 percent to 1.20 percent of the value of the transaction - or face daily fines worth 3.5 percent of the company's daily global turnover.

MasterCard's decision also affects its Maestro-branded debit and consumer credit cards.

In March, the EU commission launched a separate anti-trust probe into rival Visa Europe Ltd to find whether its MIFs are fair.

Source

[travelling high]

Wow I didn't even know they did that.It sure as heck doesn't seem legal.Here in the States they are not allowed to charge you different when you go from state to state.It is against inter-state commerce.