Money News
The OFT (office of Fair Trading) has announced it's to expand the scope of its investigation into interchange fees to include immediate debit cards. This follows on from its current investigation into MasterCard and Visa's current UK interchange fee arrangements relating to consumer and commercial credit cards, charge cards and deferred debit cards.
Interchange fees are payments made between banks on virtually all purchases in the UK made using Visa and MasterCard cards. These are passed on to merchants and, ultimately, to consumers through higher prices.
The OFT says the expansion of this investigation is consistent with the scope of the European Commission's current investigation into MasterCard's European intra-regional interchange fees. In conducting the new investigation the OFT will seek information from card issuers and other parties as it considers appropriate.
In April 2006 the watchdog ruled that credit card default charges - levied when customers fail to make the minimum payment on a bill - were unfair and forced providers to lower them to £12 or less.
09 February 2007 © Moneyextra.com
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