Sir, – The article "Consumers could face €107m in extra card fees" (Business, November 20th) is misleading. The conclusion that regulation of hidden debit and credit card fees would end up costing people more is not supported by the facts. On the contrary, it will benefit consumers, small businesses and larger retailers alike. As it stands, there is no competition in the interchange fees market, which results in huge variations of the fees paid by retailers across the EU. Fees can be as low as 0.3 per cent in France and around an average of 2 per cent in Poland. Ultimately it is our customers who foot the bill as inflated interchange fees are passed on in the cost of products.
It is unequivocally good news that the European Commission has now proposed a regulation to create a fair, transparent and competitive market in card fees for Europe’s 500 million consumers. In a tough economic climate, a regulation for interchange fees will help companies such as B&Q Ireland, where in the past three years alone interchange fees have cost us €600,000. Savings here would support our strategy to roll back prices for our customers.
The tide is finally turning on interchange fees. The Polish government has just taken a bold decision to reduce bloated fees to 0.5 per cent. If the Irish Government supports the EU proposal, retailers and household budgets are also set to benefit.
The EU is to be commended for looking to resolve interchange fees once and for all. Once a fair payments infrastructure is in place, the “digital single market” comprising online and m-commerce across the EU will have a better chance of flourishing. – Yours, etc,
KEVIN O’BYRNE,
CEO of B&Q UK & Ireland,
Director of Kingfisher plc,
Sheldon Square,
London, England.