PRA welcomes European Commissions move on debit and credit card interchange fees

Published 24/07/2013 00:00:00 in Press Releases

The Petrol Retailers’ Association (PRA), the trade body representing independent forecourts in the UK, welcomes the European Commission’s intentions to cap “interchange” fees for domestic credit and debit card transactions.

The European Commission today announced new rules on payment services that intend to benefit both consumers and retailers alike.

Brian Madderson, PRA Chairman commented “The PRA have lobbied the European Commission, Office of Fair Trading and most recently HM Treasury for a reduction in the punitive Merchant Service Charges and for greater transparency of the costs associated with cards, therefore today’s announcement is extremely positive for our members.

“However, we are disappointed that it could take up to two years to implement these changes.

“As a result, the PRA will continue to press for the creation of a specific regulator for the payment services industry in the UK, one that could take quicker action to identify anti-competitive practices. We will also lobby for greater transparency from card providers around charging and contractual practices.

“Competition is fierce in fuel retailing and the numbers of independent forecourts in the UK continue to close at an alarming rate. Around 70% of all transactions are made with some form of card. Therefore, with 60% of the price of fuel being made up of tax and gross profits falling between 2-3%, reductions in card charges can mean the difference between staying in business and going bust.

“Nevertheless this is a step in the right direction and the PRA hope that this can keep some of our members in business and halt the declining number of forecourts seen over recent years”.

ENDS

Notes for editors:

Keely Scanlan, Press Officer

Mob: 07825 097 697

Press Office direct line: 020 7307 3422

Press Office fax: 020 7307 3406

Web: www.rmif.co.uk Email: keely.scanlan@rmif.co.uk
The Retail Motor Industry represents the interests of operators in England, Wales, Scotland, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. 

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