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Note that 0.3% is the cap on interchange fees, i.e. what the card circuit (Visa, MasterCard) charges. The actual cost to merchants is about 1%. Moreover, AMEX s

• johnnycab 7y ago
  >Moreover, AMEX somehow is not subject to this regulation. NAL. It is somewhat complex and involved Amex exploiting a 'loophole' in the EU law, which capped the fees. It revolves around how three party and four party arrangements were structured and implemented. Nonetheless, it was challenged and Amex lost it's appeal and currently open for interpretation, notwithstanding the fees that it has to continue swallowing as a result. Excerpt: What is more complex is that American Express doesn’t even charge interchange fees because there is no intermediary. There are no interchange fees to cap. Instead, it has to cap its general fee charged to retailers. This will presumably need to be set at a level similar to the total fees now charged to retailers for accepting Visa or Mastercard. https://www.headforpoints.com/2018/02/08/american-express-european-court-of-justice-interchange-fees/ https://www.headforpoints.com/2018/02/08/american-express-eu...
• lxgr 7y ago
  The reason for that is that as a merchant, you don't get to choose your customer's issuing bank, but you do get to negotiate with your PSP/merchant acquirer (and switch – there is quite some competition in that space). Scheme fees are still unregulated, though, and I assume that these will be the next focus area of the EU regulator(s).