After a lengthy investigation the European Commission has today (19 December 2007) published a decision regarding MasterCard’s intra-regional (i.e. within Europe) cross-border interchange fees. Although MasterCard has already announced its intention to appeal, this decision is likely to inform a similar OFT investigation into card interchange fees in the UK.

Paul Rodford, APACS Head of Card Policy, said: "This is a highly complex legal and economic debate which is far from over and, as we stand, the impact on the UK market remains limited. However, the UK card industry’s interest is heightened by today's decision because of the potential impact it has on UK consumers.

In simple terms, should the OFT decide to let today's decision influence its own investigation on this issue, it could radically alter the charges customers pay on their cards and the choice of cards available to them. You only need to look at the experience in Australia as an example where customers have been detrimentally affected and where, despite expectations, retailer prices have not come down: people paying by card don't pay less.

We would ask the OFT to ensure that any investigation it carries out is open and transparent with any decision being based on sound legal and economic principles; is clear about the economic impacts and what it is setting out to achieve and what its social policy objectives are; and that any decision should deliver a level playing-field.

We believe that the current arrangement on domestic interchange fees continue to serve the UK economy well as we now have one of the most competitive and efficient card markets in the world. There can be no greater proof that card acceptance has increased dramatically and since 1998 the number of terminals accepting cards has increased from 610,000 to over one million (an increase of 72%). "

ENDS

For further information please contact:

APACS press office: 020 7711 6340/6234