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BRUSSELS - The European Union says Visa has agreed to reduce some credit card payment fees significantly to address concerns raised by the bloc's antitrust authority.
The European Commission, which acts as the 27-nation bloc's competition watchdog, says Visa proposes to reduce its inter-bank fees for credit card payments to 0.3 per cent of a transaction's value — a reduction of about 40 to 60 per cent.
It says the company is also proposing to reform its rules to facilitate cross-border competition.
The Commission said last year Visa's fees and rules reduce price competition between banks, inflate the cost of payment card acceptance for merchants and ultimately increase consumer prices.
It is now launching a market test of the proposed remedies before making them — maybe after some modifications — legally binding.