#62023CJ0549EU Court Ruling on Interchange Fees in Payment Card Partnerships
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This EU court ruling clarifies how interchange fee caps apply to payments made by three-party card schemes, like American Express, to co-branding partners. It mandates that such partners, even if not issuers themselves, are subject to the same fee limits to prevent circumvention. Businesses involved in payment card schemes must ensure compliance to avoid penalties.
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Key Changes
- Applies interchange fee caps to payments by three-party card schemes to co-branding partners
- Mandates compliance with fee limits even if partners are not issuers
- Aims to prevent circumvention of fee regulations
Obligations
What this law requires
Payment service providers must not offer or request a per transaction interchange fee of more than 0.3% of the transaction value for any credit card transaction.
Payment service providers must classify any remuneration paid to co-branding partners as part of the interchange fee if it relates to card-based payment transactions.
Firms involved in three-party payment card schemes must ensure compliance with the interchange fee regulations applicable to four-party schemes.
Co-branding partners must ensure that the remuneration they receive from payment card providers does not circumvent the stipulated interchange fee cap.
Payment service providers must keep transparent records of all fees, payments, and incentives related to card-based payment transactions to demonstrate compliance with regulations.