In September, the Commission sent detailed questionnaires to merchants and payment service providers, asking them to explain how so-called “scheme fees” – fees charged for participating in card schemes – affected their businesses, Reuters reported.
EuroCommerce, the organization representing giants such as Amazon, Carrefour, H&M and IKEA, claims that these costs almost wipe out the benefits of the European Union's 2015 tax cuts.
“This will cost the EU economy around €1.5 billion per year by 2022,” the organization said.
What's more, with more than 800 types of commissions, the system is so complex that “traders often don't understand its value.”
If the investigation proves anti-competitive practices, Visa and Mastercard will face fines of up to 10% of their global turnover. Both companies have confirmed they have received requests for information and are cooperating with authorities.
And Britain flagged similar concerns in May, saying there was little evidence that large tax increases had brought significant improvements to services.
(source: AFP)
