27 March 2008
An enquiry has been started by the European Union (EU) after charges imposed by Visa on companies when people use their credit cards overseas.
Typically, a 0.7% charge is levied on firms whenever such a transaction takes place, ultimately leading to losses of millions, reports the BBC.
In response, Head of the European Retail Round Table Paul Skehan said that travellers will see the impact of these charges as companies look to offset their losses and increase prices.
"High card fees hit consumers by putting pressure on prices and by discouraging all retailers from accepting cards," he told the news source.
Spokesman at Visa Paul Ravenscroft argued that via "constructive" dialogue with the authorities than a new agreement can be made and that this would be the most viable way forward.
Recently, the UK payments association Apacs said that fraud carried out after people have used their cards abroad increased last year.
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