Feeds

EU marks Visa's cards for anti-trust probe

Formal proceedings launched

Intelligent flash storage arrays

The European Commission is opening formal antitrust proceedings against Visa Europe Limited in connection to how much it charges for cross-border transactions.

Visa International was investigated by the Commission over multilateral interchange fees(MIF) in 2002 and exempted when Visa offered to reduce fees from 1.1 per cent to 0.7 per cent. The fee is paid to the consumer's bank by the merchant's bank. Banks typically pass this transaction charge onto shops and merchants.

This agreement ended 31 December 2007 and the fees are now the responsibility of Visa Europe Limited.

Visa Europe Limited said the announcement was a "standard procedural step".

The company said: "We see no evidence that Visa Europe’s interchange has acted as a tax on consumption or has caused consumers to pay twice. The net result of a substantial reduction in interchange would see a disproportionate shift in the costs of the card payments system from retailers to consumers."

The Commission is also investigating the "Honour-All-Cards-Rule". The statement notes that starting proceedings is not proof of wrongdoing.

The UK's Office of Fair Trading made similar complaints against credit card companies in 2005.

The Commission statement is here.®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.