The  European Commission proposal aims to reduce the cost of using payment cards for consumers, setting new fee limits at 0.2% and 0.3% of the transaction value for debit cards and credit cards respectively.

According to the European Commission the revised Payment Services Directive brings a number of new important elements and improvements to the EU payment market.

However there are several esceptic consumer associations that say that the proposal would not result in lower prices for consumers, but would rather benefit larger retailers.

The Spanish Banks, Saving Banks and Insurance Users Association (ADICAE) for example, believes that the European Commission’s recast of the payment services directive and the regulation on interchange fees will only favour large merchants and banks and not consumers and small merchants. In this context ADICAE will oppose to both proposals at the different European institutions that will debate and adopt such legislation (Council, European Parliament, European Economic and Social Committee, etc.).

According to ADICAE  the proposed new directive and regulation does not guarantee that merchants will pass to consumers the savings they will have through lower merchant service charges estimated by the Commission in €4 billion per year. 

Now, after the European Commision´s proposals (the directive and the regulation) these will have to be adopted by the European Parliament and the Council of Ministers under the ordinary legislative procedure. 

The legislative Package negotiations will start after the summer break with a view to reach agreement on the Commission´s proposals by Spring 2014.