MDB issues new scheme with revised collateral requirement after the Malta Chamber of SMEs highlights difficulties
23 September 2020
Following problems flagged by members on accessing the MDB loan scheme, the Malta Chamber of...
fees to process card transactions are to be capped under a proposal by the
European Union's executive aiming to draw a line under a battle with payment
groups such as Visa Europe and MasterCard.
Under a draft
European Commission plan, a ceiling would be introduced for charges on all
consumer debit and credit card transactions, scaling back a multi billion euro
revenue stream for EU banks.
The measure stops
short of a full ban on debit card fees, a more far-reaching intervention
envisaged in earlier drafts. Even so, the assault on fees will be a setback for
the payments industry, which has warned it will raise banking fees for
consumers rather than cut retail prices.
In addition, the
draft plan requires payment card schemes and the entities that process
transactions to be legally separated – a forced split that would remake the
business model for the main payment groups.
proposes a 0.2 per cent ceiling on all consumer debit transactions and 0.3per
cent cap on credit card transactions, introduced after a two-year transition
period where the ceiling applies only to cross-border fees.
Commission estimates, this will cut total EU debit card fees from around €4.8bn
to €2.5bn, and credit card fees from €5.7bn to €3.5bn.
The cap is broadly
based on the proposed antitrust deals with Visa and MasterCard and aims to give
"legal clarity" but it reaches deeper into domestic card markets, where fees
can vary dramatically. Typical debit card fees range from 0.1 per cent in
Denmark to 1.6 per cent in Poland. Average credit card rates in Germany stand
at 1.8 per cent, compared to 0.5 per cent in France.
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).