Visa representatives said that interchange fees play an essential role in balancing the payment system for all parties involved, from cardholders and retailers, to issuer and acquiring banks, as well as in the increase of card penetration rate.
According to a draft emergency ordinance published by the Finance Ministry, card issuer banks would not be allowed to charge interchange fees exceeding 0.2% of the transaction value for debit cards and 0.3% for credit cards.
“Each market is unique and the flexibility in establishing interchange fees in Europe should allow the suitable payment method for each market in particular, especially on the markets where the electronic payment development is in an early stage,” the release reads.
According to Visa representatives, Romania currently has the lowest card penetration rate in Europe, of 7%, compared with a European average of 30%. Nevertheless, Romanians are very open to accepting electronic payment innovation, which provides increased comfort and security.
On the other hand, Visa representatives salute the government’s intention to restrict cash payments, a step that would hinder the development of underground economy.
Two days ago, MasterCard representatives stated that the cut in the interchange fees for card transactions might trigger higher costs for cardholders and lower investments in the development of payment infrastructure.
The Finance Ministry said that the European Commission also drew up a bill on the cut of interchange fees for cross-border transactions to 0.2% from the value of the transaction for debit cards and 0.3% for credit cards, while in two years from its implementation, the fees would also be applied for local transactions with credit and debit cards.
In the case of Romania, the interchange fee for card payments is the result of a multilateral agreement between banks holding 98% of the local cards market, and represents 0.5% + 2.50 lei (EUR0.58) for ATM transactions, in which the fee is paid by the issuer bank to the acquiring bank (owner of the ATM), and 1.00 % (standard), 1.50 % (e-commerce), and 0.7% (oil) for POS transactions, in which the fee is paid by the acquiring bank to the issuer bank.
Thus, the fees would be significantly cut, between 50% and 90%, following the implementation of the draft.
In their turn, bank representatives said they should analyze the level of acceptance and usage of card payment corroborated with development costs, before the cut of the interchange fee, as well as the costs impact on cardholders.