Banks and card scheme operators in the United Kingdom are campaigning to head off a planned reduction in card payment interchange fees, warning that other charges may have to be imposed as a result.
The Telegraph reports that the UK Government has issued a consultation paper on the proposed changes, which involve cutting interchange rates from 0.9 per cent of transaction costs to as little as 0.2 per cent. The industry has responded by saying the changes might result in the imposition of annual debit card charges and increases in credit card charges.