Amendments adopted by the European Parliament on 3 April 2014 on the proposal for a regulation of the European Parliament and of the Council on interchange fees for card-based payment transactions (COM(2013)0550 — C7-0241/2013 — 2013/0265(COD))
Date: 2014-04-03
Institutions: Committee on Economic and Monetary Affairs, Committee on the Internal Market and Consumer Protection, European Parliament
Subjects: bank charges, consumer information, electronic money, financial legislation, financial services, intra-EU payment, single market




C_2017408EN.01040501.xml










30.11.2017   


EN


Official Journal of the European Union


C 408/405





P7_TA(2014)0279
Interchange fees for card-based payment transactions ***I
Amendments adopted by the European Parliament on 3 April 2014 on the proposal for a regulation of the European Parliament and of the Council on interchange fees for card-based payment transactions (COM(2013)0550 — C7-0241/2013 — 2013/0265(COD)) (1)

(Ordinary legislative procedure: first reading)
(2017/C 408/27)

Amendment 1


Proposal for a regulation


Recital 7








Text proposed by the Commission




Amendment











(7)


Preparation of legislation is under way in several Member States (21) to regulate interchange fees, covering a number of issues, including caps on interchange fees at various levels, merchant fees, the Honour All Cards rules or steering measures. The existing administrative decisions in some Member States vary significantly. 
In view of the harmfulness
 of interchange fees 
to retailers and consumers
, a further introduction of regulatory measures at national level aimed at addressing the level or 
divergencies of
 these fees is anticipated. Such national measures would be likely to lead to significant barriers to the completion of the internal market in the area of cards, internet and mobile payments based on cards and would therefore hinder the freedom to provide services.












(7)


Preparation of legislation is under way 
or already completed
 in several Member States (21) to regulate interchange fees, covering a number of issues, including caps on interchange fees at various levels, merchant fees, the Honour All Cards rules or steering measures. The existing administrative decisions in some Member States vary significantly. 
To make the levels
 of interchange fees 
more consistent
, a further introduction of regulatory measures at national level aimed at addressing the level 
of
 or 
divergences between
 these fees is anticipated. Such national measures would be likely to lead to significant barriers to the completion of the internal market in the area of cards, internet and mobile payments based on cards and would therefore hinder the freedom to provide services.









Amendment 2


Proposal for a regulation


Recital 8








Text proposed by the Commission




Amendment











(8)


Payment cards are the most frequently used electronic payment instrument for retail purchases. However, integration of the Union payment card market is far from complete as many payment solutions cannot develop beyond their national borders or new pan-Union providers are prevented from entering the market. 
The lack of market integration currently results in higher prices and less choice in payment services for consumers and retailers, and more limited opportunities
 to take advantage of the internal market. There is 
therefore
 a need to remove obstacles to the 
efficient functioning of the card market,
 including mobile and internet payments that are based on card transactions 
which still pose barriers to the deployment of a fully integrated market
.












(8)


Payment cards are the most frequently used electronic payment instrument for retail purchases. However, integration of the Union payment card market is far from complete as many payment solutions cannot develop beyond their national borders or new pan-Union providers are prevented from entering the market. To take 
full
 advantage of the internal market, there is a need to remove obstacles to the 
integration of new card-payment options
, including mobile and internet payments that are based on card transactions.









Amendment 3


Proposal for a regulation


Recital 9








Text proposed by the Commission




Amendment











(9)


To enable the internal market to function effectively, the use of electronic payments should be promoted and facilitated to the benefit of retailers and consumers. Cards and other electronic payments can be used in a more versatile manner, including possibilities to pay online in order to take advantage of the internal market and e-commerce, whilst electronic payments also provide retailers with potentially secure payments. Card and card based payments instead of cash use could therefore be beneficial for retailers and consumers, provided the fees for the use of the payment systems are set at an economically efficient level, whilst contributing to innovation and market entry of new operators.












(9)


To enable the internal market to function effectively, the use of electronic payments should be promoted and facilitated to the benefit of retailers and consumers. Cards and other electronic payments can be used in a more versatile manner, including possibilities to pay online in order to take advantage of the internal market and e-commerce, whilst electronic payments also provide retailers with potentially secure payments. Card and card based payments instead of cash use could therefore be beneficial for retailers and consumers, provided the fees for the use of the payment systems are set at an economically efficient level, whilst contributing to 
fair competition,
 innovation and market entry of new operators.









Amendment 4


Proposal for a regulation


Recital 10








Text proposed by the Commission




Amendment











(10)




One of the key practices hindering the functioning of the internal market in card and card-based payments is the widespread existence of
 interchange fees
, which are in most Member States not subject
 to any legislation. Interchange fees are inter-bank fees usually 
applied between the
 card-acquiring payment service providers 
and the
 card-issuing payment service providers belonging to 
a certain card
 scheme. Interchange fees are a main 
part
 of the fees charged to merchants by acquiring payment service providers for every card transaction. Merchants in turn incorporate these card costs in the general prices of goods and services. 
Competition between card schemes appears in practice to be largely aimed at convincing as many issuing payment service providers (e.g. banks) as possible to issue their cards, which usually leads to higher rather than lower interchange fees on the market, in contrast with the usual price disciplining effect of competition in a market economy. Regulating
 interchange fees would improve the functioning of the internal market.












(10)




In most Member States,
 interchange fees 
are not subject
 to any legislation 
but, rather, to decisions of the national competition authorities
. Interchange fees are inter-bank fees usually 
passed from
 card-acquiring payment service providers 
to
 card-issuing payment service providers belonging to 
the relevant
 scheme. Interchange fees are a main 
component
 of the fees charged to merchants by acquiring payment service providers for every card transaction. Merchants in turn incorporate these card costs
, like all their other costs,
 in the general prices of goods and services. 
Consistent application of the competition rules to
 interchange fees would 
reduce transaction costs for consumers and thus
 improve the functioning of the internal market.









Amendment 5


Proposal for a regulation


Recital 11








Text proposed by the Commission




Amendment











(11)


The currently existing wide variety of interchange fees and their level prevent the emergence of ‘new’ pan Union players on the basis of business models with lower interchange fees, to the detriment of potential economies of scale and scope and their resulting efficiencies. This has a negative impact on retailers and consumers and prevents innovation. As Pan-Union players would have to offer issuing banks as a minimum the highest level of interchange fee prevailing in the market they want to enter it also results in persisting market fragmentation. Existing domestic schemes with lower or no interchange fees may also be forced to exit the market because of the pressure from banks to obtain higher interchange fees revenues. As a result, consumers and merchants face restricted choice, higher prices and lower quality of payment services while their ability to use pan-Union payment solutions is restricted. In addition, retailers cannot overcome the fee differences by making use of card acceptance services offered by banks in other Member States. Specific rules applied by the payment schemes require the application of the interchange fee of the ‘Point of Sale’ (country of the retailer) for each payment transaction. This prevents 
acquiring banks
 from successfully offering their services on a cross border basis. It also 
prevents
 retailers from reducing their payment costs to the benefit of consumers.












(11)


The currently existing wide variety of interchange fees and their level prevent the emergence of ‘new’ pan Union players on the basis of business models with lower 
or no
 interchange fees, to the detriment of potential economies of scale and scope and their resulting efficiencies. This has a negative impact on retailers and consumers and prevents innovation. As Pan-Union players would have to offer issuing banks as a minimum the highest level of interchange fee prevailing in the market they want to enter it also results in persisting market fragmentation. Existing domestic schemes with lower or no interchange fees may also be forced to exit the market because of the pressure from banks to obtain higher interchange fees revenues. As a result, consumers and merchants face restricted choice, higher prices and lower quality of payment services while their ability to use pan-Union payment solutions is restricted. In addition, retailers cannot overcome the fee differences by making use of card acceptance services offered by banks in other Member States. Specific rules applied by the 
international card
 payment schemes require
, on the basis of their territorial licensing policies,
 the application of the interchange fee of the ‘Point of Sale’ (country of the retailer) for each payment transaction. This prevents 
acquirers
 from successfully offering their services on a cross-border basis. It 
can also prevent
 retailers from reducing their payment costs to the benefit of consumers.









Amendment 6


Proposal for a regulation


Recital 15








Text proposed by the Commission




Amendment











(15)


This Regulation 
follows a gradual approach. As a first step, it is necessary to take measures to facilitate
 cross-border issuing and acquiring of payment card transactions. 
Allowing merchants to
 choose an acquirer outside their own Member State (
‘cross border
 acquiring’) 
and imposing a
 maximum level of 
cross border
 interchange fees for 
cross border
 acquired transactions 
should
 provide the necessary legal clarity. 
In addition, licences for issuing or acquiring of payment instruments should be valid without geographic restrictions within the Union. These measures would facilitate the smooth functioning of an internal market for card, internet and mobile payments, to the benefit of consumers and retailers
.












(15)




In order to facilitate the smooth functioning of an internal market for card, internet and mobile payments, to the benefit of consumers and retailers,
 this Regulation 
applies to
 cross-border 
and to national
 issuing and acquiring of payment card transactions. 
If merchants can
 choose an acquirer outside their own Member State (
‘cross-border
 acquiring’), 
which will be facilitated by the imposition of the same
 maximum level of 
both domestically and cross-border
 interchange fees for acquired transactions 
and the prohibition of territorial licensing, it should be possible to
 provide the necessary legal clarity 
and to prevent distortions of competition between payment-card systems
.









Amendment 7


Proposal for a regulation


Recital 16








Text proposed by the Commission




Amendment











(16)


As a consequence of unilateral undertakings and commitments accepted in the framework of competition proceedings, many cross-border card payment transactions in the Union are already carried out respecting the maximum interchanges fees 
applicable
 to the 
first phase of this Regulation. Therefore,
 the provisions relating to 
those
 transactions should 
enter into force quickly, creating opportunities for retailers to seek cheaper acquiring services cross-border, and incentivising domestic banking communities or schemes to lower their acquiring fees
.












(16)


As a consequence of unilateral undertakings and commitments accepted in the framework of competition proceedings, many cross-border card payment transactions in the Union are already carried out respecting the maximum interchanges fees
. In order
 to 
provide for fair competition in
 the 
market for acquiring services,
 the provisions relating to 
cross-border and to national
 transactions should 
apply simultaneously and within a reasonable period after entry into force of this Regulation, taking account of the difficulty and complexity of the migration of payment-card systems, which this Regulation necessitates
.









Amendment 8


Proposal for a regulation


Recital 17








Text proposed by the Commission




Amendment











(17)




For domestic transactions
, a 
transition
 period is necessary to provide payment services providers and schemes with time to adapt to the new requirements. Therefore, after a 
two
 year period following the entry into force of this Regulation and in order to provide for a completion of an internal market for card-based payments, the caps on interchange fees for consumer card transactions should 
be extended to
 cover all, cross-border and domestic payments.












(17)




However
, a 
transitional
 period is necessary to provide payment services providers and schemes with time to adapt to the new requirements. Therefore, after a 
one-
year period following the entry into force of this Regulation and in order to provide for a completion of an internal market for card-based payments, the caps on interchange fees for consumer card transactions should cover all, cross-border and domestic payments.









Amendment 9


Proposal for a regulation


Recital 18








Text proposed by the Commission




Amendment











(18)




In order to facilitate cross border acquiring
 all 
(cross-border and domestic) ‘consumer’
 debit card transactions and card based payment transaction should have a maximum interchange fee of 
0,20  %
 and all 
(cross-border and domestic) consumer
 credit card transactions and card based payment transactions based on those should have a maximum interchange fee of 
0,30  %
.












(18)


All debit card transactions and card based payment transaction should have a maximum interchange fee of 
0,2  %
 and all credit card transactions and card based payment transactions based on those should have a maximum interchange fee of 
0,3  %
.









Amendment 10


Proposal for a regulation


Recital 18 a (new)








Text proposed by the Commission




Amendment





 










(18a)






The impact assessment shows that a prohibition of interchange fees for debit card transactions would be beneficial for card acceptance, card usage, development of the single market and generate more benefits to merchants and consumers than a cap set at any higher level. Moreover it would avoid negative effects on national systems with very low or zero interchange fees for debit transaction by a higher cap due to cross border expansion or new market entrants increasing fee levels to the level of the cap. A ban on interchange fees for debit card transactions also addresses the threat of exporting the interchange fee model to new, innovative payment services such as mobile and online systems.











Amendment 11


Proposal for a regulation


Recital 19 a (new)








Text proposed by the Commission




Amendment





 










(19a)






In accordance the basic principles of the internal market, acquirers should be able to provide their services to merchants throughout the Union applying the multilateral interchange fees (MIFs) that they apply in their national market. They should not apply higher MIFs to cross-border transactions than they apply to national transactions.











Amendment 12


Proposal for a regulation


Recital 22








Text proposed by the Commission




Amendment











(22)


Payment card transactions are generally carried out on the basis of two main business models, so-called three party payment card schemes (cardholder — acquiring and issuing scheme — merchant) and four party payment card schemes (card holder- issuing bank- acquiring bank- merchant). Many four payment card party schemes are using an explicit interchange fee, mostly multilateral. Interchange fees (fees paid by acquiring banks to incentivise card issuing and card use) are implicit in three party payment card schemes. To acknowledge the existence of implicit interchange fees and contribute to the creation of a level playing field, three party payment card schemes using payment service providers as issuers or acquirers should be considered as four party payment card schemes and should follow the same rules, whilst transparency and other measures related to business rules should apply to all providers.












(22)


Payment card transactions are generally carried out on the basis of two main business models, so-called three party payment card schemes (cardholder — acquiring and issuing scheme — merchant) and four party payment card schemes (card holder- issuing bank- acquiring bank- merchant). Many four payment card party schemes are using an explicit interchange fee, mostly multilateral. Interchange fees (fees paid by acquiring banks to incentivise card issuing and card use) are implicit in three party payment card schemes. To acknowledge the existence of implicit interchange fees and contribute to the creation of a level playing field, three party payment card schemes using payment service providers as issuers or acquirers should be considered as four party payment card schemes and should follow the same rules, whilst transparency and other measures related to business rules should apply to all providers. 
Three-party schemes should accept transactions made using their cards from any acquirer based on general card transaction standards and acquiring rules comparable to the merchant rules for the specific three party schemes and with interchange caps in accordance with this Regulation.











Amendment 13


Proposal for a regulation


Recital 23








Text proposed by the Commission




Amendment











(23)


It is important to ensure that the provisions concerning the interchange fees to be paid or received by payment service providers are not circumvented by alternative flows of fees to issuing payment services providers. To avoid this, the ‘net compensation’ of fees paid and received by the issuing payment service provider from a payment card scheme should be considered as the interchange fee. When calculating the interchange fee, for the purpose of checking whether circumvention is taking place the total amount of payments or incentives received by an issuing payment services provider from a payment card scheme with respect to the regulated transactions less the fees paid by the issuing payment services provider to the scheme should be taken into account. Payments, incentives and fees 
considered could be
 direct (i.e. volume-based or transaction-specific) or indirect (including marketing incentives, bonuses, rebates for meeting certain transaction volumes).












(23)


It is important to ensure that the provisions concerning the interchange fees to be paid or received by payment service providers are not circumvented by alternative flows of fees to issuing payment services providers. To avoid this, the ‘net compensation’ of fees paid and received by the issuing payment service provider
, including possible authorisation charges,
 from a payment card scheme should be considered as the interchange fee. When calculating the interchange fee, for the purpose of checking whether circumvention is taking place the total amount of payments or incentives received by an issuing payment services provider from a payment card scheme with respect to the regulated transactions less the fees paid by the issuing payment services provider to the scheme 
and the monetary incentives or equivalent received by a cardholder from a payment card scheme
 should be taken into account. 
All
 payments, incentives and fees
, whether
 direct (i.e. volume-based or transaction-specific) or indirect (including marketing incentives, bonuses, rebates for meeting certain transaction volumes). 
In checking circumventions of this Regulation providing for the maximum amount of interchange fees, the profit of payment card issuers that results from special programmes carried out jointly by payment card issuers and payment card schemes, and revenue from processing, licensing and other fees providing revenue to card organisations should, in particular, be taken into account.











Amendment 14


Proposal for a regulation


Recital 30








Text proposed by the Commission




Amendment











(30)




For the effective functioning of the limitations to the Honour All Cards Rule certain information is indispensable. First,
 payees should have the means to identify the different categories of cards. Therefore, the various categories should be identifiable 
visibly and
 electronically on the device. Secondly, also the payer should be informed about the acceptance of his payment instrument(s) at a given point of sale. 
It is necessary that any limitation on the use of a given brand to be announced by the payee to the payer at the same time and under the same conditions as the information that a given brand is accepted.














(30)


Payees 
and payers
 should have the means to identify the different categories of cards. Therefore, the various categories should be identifiable electronically 
and for newly issued card based payment instruments also visibly
 on the device 
or on the payment terminal
. Secondly, also the payer should be informed about the acceptance of his payment instrument(s) at a given point of sale.









Amendment 15


Proposal for a regulation


Recital 30 a (new)








Text proposed by the Commission




Amendment





 










(30a)






A payment is an agreement between the payer and the payee. In order to ensure that competition between brands is effective, it is important that the choice of payment application be made by users, not imposed by the upstream market, comprising payment card systems, payment service providers or processors. Such an arrangement should not prevent payers and payees from setting a default choice of application, where technically feasible, provided that that choice can be changed for each transaction. If the payee selects an application supported by both, the user should be able to reject it and choose another application.











Amendment 16


Proposal for a regulation


Recital 31








Text proposed by the Commission




Amendment











(31)


In order to ensure that redress is possible where this Regulation has been incorrectly applied, or where disputes occur between payment services users and payment services providers, Member States should establish adequate and effective out-of-court complaint and redress procedures. Member States should lay down rules on the penalties applicable to infringements of this Regulation and should ensure that those penalties are effective, proportionate and dissuasive and that they are applied.












(31)


In order to ensure that redress is possible where this Regulation has been incorrectly applied, or where disputes occur between payment services users and payment services providers, Member States should establish adequate and effective out-of-court complaint and redress procedures. Member States
, following guidelines set up by the European Supervisory Authority (European Banking Authority) (‘EBA’), established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council

 (1a)

,
 should lay down rules on the penalties applicable to infringements of this Regulation and should ensure that those penalties are effective, proportionate and dissuasive and that they are applied.









Amendment 17


Proposal for a regulation


Article 1 — paragraph 1








Text proposed by the Commission




Amendment





1.   This Regulation lays down uniform technical and business requirements for payment 
card
 transactions carried out within the Union, where both the payer's payment service provider and the payee's payment service provider are established therein.


1.   This Regulation lays down uniform technical and business requirements for 
card-based
 payment transactions carried out within the Union, where both the payer's payment service provider and the payee's payment service provider are established therein.





Amendment 18


Proposal for a regulation


Article 1 — paragraph 2








Text proposed by the Commission




Amendment





2.   This Regulation does not apply to payment instruments that can be used only within a limited network designed to address precise needs through payment instruments only to be used in a limited way, because they allow the specific instrument holder to acquire goods or services only in the premises of the issuer, within a limited network of service providers under a direct commercial agreement with a professional issuer, or because they can be used only to acquire a 
limited
 range of goods or services.


2.   This Regulation does not apply to payment instruments that can be used only within a limited network designed to address precise needs through payment instruments only to be used in a limited way, because they allow the specific instrument holder to acquire goods or services only in the premises of the issuer, within a limited network of service providers under a direct commercial agreement with a professional issuer, or because they can be used only to acquire a 
very narrow
 range of goods or services.





Amendment 19


Proposal for a regulation


Article 1 — paragraph 3 — point a








Text proposed by the Commission




Amendment













(a)






transactions with commercial cards,










deleted







Amendment 20


Proposal for a regulation


Article 1 — paragraph 3 — point b








Text proposed by the Commission




Amendment











(b)


cash withdrawals at automatic teller machines and












(b)


cash withdrawals 
or transactions other than sales of goods or services performed
 at automatic teller machines 
and cash disbursements at the counter of payment service providers' premises;
 and









Amendment 21


Proposal for a regulation


Article 1 — paragraph 3 — point c








Text proposed by the Commission




Amendment











(c)


transactions with cards issued by three party payment card schemes.












(c)


transactions with cards issued by three party payment card schemes 
where their volume does not exceed a threshold set by the Commission;











Amendment 22


Proposal for a regulation


Article 1 — paragraph 4 a (new)








Text proposed by the Commission




Amendment





 




4a.
   
Articles 6 and 7 shall not apply to domestic debit card schemes that operate with an average interchange fee or net compensation model which is verifiably below the threshold value in Articles 3 and 4.







Amendment 23


Proposal for a regulation


Article 2 — point 4








Text proposed by the Commission




Amendment











(4)


‘debit 
card transaction
’ means 
an card
 payment transaction 
included with prepaid
 cards linked to a current or deposit access account to which 
a transaction is debited in less than or 48 hours after
 the transaction 
has been authorised/initiated.














(4)


‘debit 
transaction by card
’ means 
a card-based
 payment transaction linked to a current or deposit access account to which the transaction 
is debited immediately upon being cleared, as well as a transaction with a prepaid card;











Amendment 24


Proposal for a regulation


Article 2 — point 5








Text proposed by the Commission




Amendment











(5)


‘credit 
card
 transaction’ means 
an
 card payment transaction 
where the transaction
 is 
settled more than 48 hours
 after the transaction has been authorised/initiated;












(5)


‘credit transaction 
by card
’ means 
a
 card 
based
 payment transaction 
which
 is 
debited at least two business days
 after the transaction has been authorised/initiated.









Amendment 25


Proposal for a regulation


Article 2 — point 8








Text proposed by the Commission




Amendment











(8)


‘cross-border payment transaction’ means a card payment or card-based payment transaction initiated by a payer or by a payee where the payer's payment service provider 
and the payee's payment service provider are
 established in different 
Member States
 or where the payment card is issued by an issuing payment service provider established in a different Member State than that of the point of sale;












(8)


‘cross-border payment transaction’ means a card payment or card-based payment transaction initiated by a payer or by a payee where the payer's payment service provider 
or the point of sale is
 established in 
a
 different 
Member State than that of the payee's payment service provider
 or where the payment card is issued by an issuing payment service provider established in a different Member State than that of the point of sale
, including where a payee uses the services of an acquirer located in another Member State
;









Amendment 26


Proposal for a regulation


Article 2 — point 12 a (new)








Text proposed by the Commission




Amendment





 










(12a)





‘payment card’ means a debit or credit card which entitles the cardholder to access cardholder's funds, or enables the cardholder to make a payment through the intermediation of an acquirer and which is accepted by a payee in order to process a payment transaction;










Amendment 27


Proposal for a regulation


Article 2 — point 13








Text proposed by the Commission




Amendment











(13)


‘payment 
card
 scheme’ means a single set of rules, practices, standards and/or implementation guidelines for the execution of payment transactions across the Union and within Member States, and which is separated from any infrastructure or payment system that supports its operation;












(13)


‘payment scheme’ means a single set of rules, practices, standards and/or implementation guidelines for the execution of payment transactions across the Union and within Member States, and which is separated from any infrastructure or payment system that supports its operation;









Amendment 28


Proposal for a regulation


Article 2 — point 15








Text proposed by the Commission




Amendment











(15)


‘three party payment card scheme’ means a payment card scheme in which payments are made from a payment account held by the scheme on behalf of the 
cardholder
 to a payment account held by the scheme on behalf of the payee, and card based transactions based on the same structure. When a three party payment card scheme licenses other payment service providers for the issuance and/or the acquiring of payment cards, it is considered as a four party payment card scheme;












(15)


‘three party payment card scheme’ means a payment card scheme in which payments are made from a payment account held by the scheme on behalf of the 
payer
 to a payment account held by the scheme on behalf of the payee, and card based transactions based on the same structure. When a three party payment card scheme licenses other payment service providers for the issuance and/or the acquiring of payment cards
, or issues payment cards with a co-brand partner or through an agent
, it is considered as a four party payment card scheme;









Amendment 29


Proposal for a regulation


Article 3 — title








Text proposed by the Commission




Amendment





Interchange fees for 
cross-border
 consumer debit or credit card transactions


Interchange fees for consumer debit or credit card 
based payment
 transactions





Amendment 30


Proposal for a regulation


Article 3 — paragraph 1








Text proposed by the Commission




Amendment





1.   With effect from 
two months after the entry into force of this Regulation
, payment services providers shall not offer or request for 
cross-border
 debit 
card
 transactions a per transaction interchange fee or other agreed remuneration with an equivalent object or effect of more than 0,2  % of the value of the transaction.


1.   With effect from … (*1), payment services providers shall not offer or request for debit transactions 
by card
 a per transaction interchange fee or other agreed remuneration with an equivalent object or effect of more than 
the lower amount of 7 eurocents or
0,2  % of the value of the transaction.





Amendment 31


Proposal for a regulation


Article 3 — paragraph 2








Text proposed by the Commission




Amendment





2.   With effect from 
two months after the entry into force of this Regulation
, payment services providers shall not offer or request for 
cross-border
 credit 
card
 transactions a per transaction interchange fee or other agreed remuneration with an equivalent object or effect of more than 0,3  % of the value of the transaction.


2.   With effect from … (*2), payment services providers shall not offer or request for credit transactions 
by card
 a per transaction interchange fee or other agreed remuneration with an equivalent object or effect of more than 0,3  % of the value of the transaction.





Amendment 32


Proposal for a regulation


Article 3 — paragraph 2 a (new)








Text proposed by the Commission




Amendment





 




2a.
   
Member States may maintain or introduce lower caps or measures of equivalent object or effect through national legislation.







Amendment 33


Proposal for a regulation


Article 4








Text proposed by the Commission




Amendment







Article 4






deleted








Interchange fees for all consumer debit or credit card transactions




 






1.
   
With effect from two years after the entry into force of this Regulation, payment service providers shall not offer or request a per transaction interchange fee or other agreed remuneration with an equivalent object or effect of more than 0,2  % of the value of the transaction for any debit card based transactions.




 






2.
   
With effect from two years after the entry into force of this Regulation, payment service providers shall not offer or request a per transaction interchange fee or other agreed remuneration with an equivalent object or effect of more than 0,3  % of the value of the transaction for any credit card based transactions.




 





Amendment 34


Proposal for a regulation


Article 5








Text proposed by the Commission




Amendment





For the purposes of the application of the caps referred to in Article 3 
and Article 4
, any net compensation received by an issuing 
bank from a
 payment 
card scheme
 in relation to payment transactions 
or related activities
 shall be treated as part of the interchange fee.


For the purposes of the application of the caps referred to in Article 3, any net compensation received by an issuing payment 
service provider
 in relation to payment transactions shall be treated as part of the interchange fee.




 




Competent authorities shall prevent any attempts by the payment service providers to circumvent this Regulation, including the issuance of payment cards in third countries.







Amendment 35


Proposal for a regulation


Article 6 — paragraph 4 a (new)








Text proposed by the Commission




Amendment





 




4a.
   
Any restriction of the provision of payment-related services in payment card schemes rules shall be prohibited, unless it is non-discriminatory and objectively necessary to operate the payment scheme.







Amendment 36


Proposal for a regulation


Article 6 a (new)








Text proposed by the Commission




Amendment





 




Article 6a






 




Cross-border transactions






 




For cross-border transactions, the interchange fee applicable shall be that of the country of the acquirer.







Amendment 37


Proposal for a regulation


Article 7 — paragraph 2








Text proposed by the Commission




Amendment





2.   Payment card schemes shall allow for the possibility that authorisation and clearing messages of single card transactions be separated and processed by different processing entities.


2.   Payment card schemes 
and issuers
 shall allow for the possibility that authorisation and clearing messages of single card transactions be separated and processed by different processing entities. 
Scheme rules and rules in licensing agreements or other contracts leading to a restriction on the freedom to choose a processor shall be prohibited.







Amendment 38


Proposal for a regulation


Article 7 — paragraph 4








Text proposed by the Commission




Amendment





4.   Processing entities within the Union shall ensure that their system is technically interoperable with other systems of processing entities within the Union through the use of standards developed by international or European standardisation bodies. In addition, processing entities shall not adopt or apply business rules that restrict interoperability with other processing entities within the Union.


4.   
By …

 (*3) processing entities within the Union shall ensure that their system is technically interoperable with other systems of processing entities within the Union through the use of standards developed by international or European standardisation bodies. In addition, processing entities shall not adopt or apply business rules that restrict interoperability with other processing entities within the Union.




 




4a.
   
In order to ensure consistent harmonisation of this Article, EBA shall, after consulting an advisory panel as referred to in Article 41 of Regulation (EU) No 1093/2010, develop draft regulatory technical standards establishing requirements to be complied with by payment systems, payment schemes and processing entities to ensure a fully open and competitive card processing market.






 




EBA shall submit those draft regulatory technical standards to the Commission by …

 (*4)





 




Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.






 




The requirements referred to in the first subparagraph shall enter into force by …

 (*5)

and shall be updated on a regular basis as appropriate.







Amendment 39


Proposal for a regulation


Article 7 — paragraph 4 b (new)








Text proposed by the Commission




Amendment





 




4b.
   
Member States may exempt newly established card-based payment schemes from applying this Article for a limited period of time by way of derogation from Articles 1 to 4b after consulting the Commission.







Amendment 40


Proposal for a regulation


Article 8 — paragraph 1








Text proposed by the Commission




Amendment





1.   Any schemes rules and rules in licensing 
agreements
 that hinder or prevent an issuer from co-badging two or more different brands of payment instruments on a card, telecommunication, digital or IT device shall be prohibited.


1.   Any schemes rules and rules in licensing 
agreements or measures of equivalent effect
 that hinder or prevent an issuer from co-badging two or more different brands of payment instruments on a card, telecommunication, digital or IT device shall be prohibited.





Amendment 41


Proposal for a regulation


Article 8 — paragraph 1 a (new)








Text proposed by the Commission




Amendment





 




1a.
   
When entering into a contractual agreement with a payment services provider, the consumer may decide to have two or more different brands of payment instruments on a payment card, telecommunication, digital or IT device. In good time before the contract is signed, the payment service provider shall provide the consumer with clear and objective information on all the payment brands available and their characteristics, including their functionality, cost and security.







Amendment 42


Proposal for a regulation


Article 8 — paragraph 2








Text proposed by the Commission




Amendment





2.   Any difference in treatment of issuers or acquirers in schemes rules and rules in licensing agreements concerning co-badging on a card, telecommunication, digital or IT device shall be objectively justified and non-discriminatory.


2.   Any difference in treatment of issuers or acquirers in schemes rules and rules in licensing agreements concerning co-badging 
or equivalent co-residing of different brands or applications
 on a card, telecommunication, digital or IT device shall be objectively justified and non-discriminatory.





Amendment 43


Proposal for a regulation


Article 8 — paragraph 3








Text proposed by the Commission




Amendment





3.   Payment card schemes shall not impose reporting requirements, obligations to pay fees or 
other
 obligations with the same object or effect on card issuing and acquiring payment services providers for transactions carried out with any device on which their brand is present in relation to transactions for which their scheme is not used.


3.   Payment card schemes shall not impose reporting requirements, obligations to pay fees or 
similar
 obligations with the same object or effect on card issuing and acquiring payment services providers for transactions carried out with any device on which their brand is present in relation to transactions for which their scheme is not used.





Amendment 44


Proposal for a regulation


Article 8 — paragraph 4








Text proposed by the Commission




Amendment





4.   Any routing principles aimed at directing transactions through a specific channel or process and other technical and security standards and requirements with respect to the handling of more than one payment card brand on a card, telecommunication, digital or IT device shall be non-discriminatory and shall be applied in a non-discriminatory manner.


4.   Any routing principles 
or equivalent measures
 aimed at directing transactions through a specific channel or process and other technical and security standards and requirements with respect to the handling of more than one payment card brand 
or equivalent
 on a card, telecommunication, digital or IT device shall be non-discriminatory and shall be applied in a non-discriminatory manner.





Amendment 45


Proposal for a regulation


Article 8 — paragraph 6








Text proposed by the Commission




Amendment





6.   Payment card schemes, issuers, acquirers and payment card handling infrastructure providers shall not insert automatic mechanisms, software or devices on the payment instrument or 
at
 equipment applied at the point of sale which limit the choice of application by the payer when using a co-badged payment instrument.


6.   Payment card schemes, issuers, acquirers and payment card handling infrastructure providers shall not insert automatic mechanisms, software or devices on the payment instrument or 
on
 equipment applied at the point of sale which limit the choice of application by the payer 
and the payee
 when using a co-badged payment instrument. 
Payees shall retain the option of installing automatic mechanisms in the equipment used at the point of sale which make a priority selection of a particular brand or application. However, payees shall not prevent the payer, for the categories of cards or related payment instruments accepted by the payee, from overriding an automatic priority selection made by the payee in its equipment
.





Amendment 46


Proposal for a regulation


Article 9 — paragraph 1








Text proposed by the Commission




Amendment





1.   Acquirers shall offer and charge payees individually specified merchant service charges for different categories and different brands of payment cards unless merchants request in writing acquiring payment services providers to charge blended merchant services charges.


1.   Acquirers shall offer and charge payees individually specified merchant service charges for different categories and different brands of payment cards 
with different interchange fee levels
 unless merchants request in writing acquiring payment services providers to charge blended merchant services charges.





Amendment 47


Proposal for a regulation


Article 10 — paragraph 1








Text proposed by the Commission




Amendment





1.   Payment schemes and payment service providers shall not apply any rule that may oblige payees accepting cards and other payment instruments issued by one issuing payment service provider within the framework of a payment instruments scheme to also accept other payment instruments of the same brand and/or category issued by other issuing payment service providers within the framework of the same scheme, except if they are subject to the same 
regulated
 interchange fee.


1.   Payment schemes and payment service providers shall not apply any rule that may oblige payees accepting cards and other payment instruments issued by one issuing payment service provider within the framework of a payment instruments scheme to also accept other payment instruments of the same brand and/or category issued by other issuing payment service providers within the framework of the same scheme, except if they are subject to the same interchange fee 
which, moreover, complies with the caps set under this Regulation
.





Amendment 48


Proposal for a regulation


Article 10 — paragraph 4








Text proposed by the Commission




Amendment





4.   
Issuing
 payment service providers shall ensure that their payment instruments are 
visibly and
 electronically identifiable, enabling payees to identify unequivocally which brands and categories of prepaid, debit, credit or commercial cards or card based payments based on these are chosen by the payer.


4.   
By …

 (*6)

, issuing
 payment service providers shall ensure that their payment instruments are electronically identifiable, 
and, in the case of their newly issued card-based payment instruments, also visibly identifiable
, enabling payees 
and payers
 to identify unequivocally which brands and categories of prepaid, debit, credit or commercial cards or card based payments based on these are chosen by the payer.





Amendment 49


Proposal for a regulation


Article 11 — paragraph 3








Text proposed by the Commission




Amendment





3.   Paragraphs 1 and 2 are without prejudice to the rules on charges, reductions or other steering set out in Article 55 of 
the proposal COM (2013)547
 and in Article 19 of Directive 2011/83/EU (22).


3.   Paragraphs 1 and 2 
of this Article
 are without prejudice to the rules on charges, reductions or other steering set out in Article 55 of 
Directive 2014/…/EU [PSD
 and in Article 19 of Directi (22).





Amendment 50


Proposal for a regulation


Article 12 — paragraph 2 a (new)








Text proposed by the Commission




Amendment





 




2a.
   
When entering into a contractual agreement with a payment services provider, the consumer shall also be provided with clear and objective periodical information about the payment characteristics and payment fees applied to payment transactions.







Amendment 51


Proposal for a regulation


Article 14 — paragraph 1








Text proposed by the Commission




Amendment





1.   Member States shall lay down rules on 
the sanctions
 applicable to infringements of this Regulation and shall take all measures necessary to ensure that they are applied. 
Such sanctions shall be
 effective, proportionate and dissuasive.


1.   Member States shall lay down rules on 
penalties
 applicable to infringements of this Regulation and shall take all measures necessary to ensure that they are applied. 
EBA may issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 in order to ensure that those penalties are
 effective, proportionate and dissuasive.





Amendment 52


Proposal for a regulation


Article 15 — paragraph 1








Text proposed by the Commission




Amendment





1.   Member States shall establish adequate and effective out-of-court complaint and redress procedures for the settlement of disputes arising under this Regulation between payees and their payment service providers. For those purposes, Member States shall designate existing bodies, where appropriate, or establish new bodies.


1.   Member States shall establish 
independent,
 adequate and effective out-of-court complaint and redress procedures for the settlement of disputes arising under this Regulation between payees and their payment service providers. For those purposes, Member States shall designate existing bodies, where appropriate, or establish new bodies. 
Payment service providers shall adhere to at least one alternative dispute resolution body.







Amendment 53


Proposal for a regulation


Article 15 — paragraph 2








Text proposed by the Commission




Amendment





2.   Member States shall notify the Commission of those bodies by 
two years after the entry into force of this Regulation
. They shall notify the Commission without delay of any subsequent change concerning those bodies.


2.   Member States shall notify the Commission of those bodies by … (*7). They shall notify the Commission without delay of any subsequent change concerning those bodies.





Amendment 54


Proposal for a regulation


Article 15 — paragraph 2 a (new)








Text proposed by the Commission




Amendment





 




2a.
   
Member States shall ensure that payment service providers participate in complaints procedures pursuant to paragraph 1.







Amendment 55


Proposal for a regulation


Article 16 — paragraph 1








Text proposed by the Commission




Amendment







Four years after the entry into force of this Regulation
, the Commission shall 
present
 to the European Parliament and to the Council a report on the application of this Regulation. The Commission's report shall look in particular at the appropriateness of the levels of interchange fees and at steering mechanisms such as charges, taking into account the use and cost of the various means of payments and the level of entry of new players 
and
 new technology on the market.




By …

 (*8), the Commission shall 
submit
 to the European Parliament and to the Council a report on the application of this Regulation. The Commission's report shall look in particular at the appropriateness of the levels of interchange fees and at steering mechanisms such as charges, taking into account the use and cost of the various means of payments and the level of entry of new players, new technology 
and innovative business models
 on the market. 
The assessment should, in particular, consider:






 










(a)






the development of cardholder fees;










 










(b)






the level of competition among payment card providers and schemes;










 










(c)






the effects on costs for the payer and the payee;










 










(d)






the levels of merchant pass-through of the reduction in interchange levels;










 










(e)






the technical requirements and its implications for all the parties involved;










 










(f)






the effects of co-badging on user-friendliness, in particular for the elderly and other vulnerable users.










 




The report by the Commission shall, if appropriate, be accompanied by a legislative proposal that may include a proposed amendment of the maximum cap for interchange fees.








(1)  The matter was referred back to the committee responsible for reconsideration pursuant to Rule 57(2), second subparagraph (A7-0167/2014).

(21)  Italy, Hungary, Poland and the United Kingdom.

(21)  Italy, Hungary, Poland and the United Kingdom.

(1a)  
Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).



(*1)  
One year after the date of entry into force of this Regulation.



(*2)  
One year after the date of entry into force of this Regulation.



(*3)  
One year after the date of entry into force of this Regulation.



(*4)  
Date…



(*5)  
Two years after the date of entry into force of this Regulation.



(*6)  
One year after the date of entry into force of this Regulation
.

(22)  Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights…

(22)  Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights
, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council.



(*7)  
Two months after the date of entry into force of this Regulation.



(*8)  
Two years after the date of entry into force of this Regulation.