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EU’s MIF timeline and impact on collecting card payments in the Europe Union

The MIF Regulation, formally titled “Regulation (EU) 2015/751 on interchange fees for card-based payment transactions,” is part of the European Commission and Parliament’s objective’s to have a single and efficient European market, open, free, and fair competition, and consumer protection, I.e. to creat a level playing field across the EU. The problem is that, as PAY.ON report in their excellent report on Driving Change With Psd2 And The Mif Regulation - Creating Opportunities in Europe, “there still remains key unregulated elements of the card payments system, including the card scheme fees charged to issuers and acquirers. The MIF Regulation, therefore, is unlikely to be the last of its kind in Europe and may inspire similar regulatory action in other markets.” 

However, corporate treasury departments need to be aware of the Timeline for the MIF Regulation:

Source & Copyright©2016 - PAY.ON

MIF Impact

The MIF Regulation caps on credit and debit interchange rates across Europe will “provides immediate benefits to payment providers and merchants, but presents a number of challenges to issuers” PAY.ON report. 

For corporate treasury departments, the issue is going to be what will your merchant acquirers charge you when these regulations come into force in December 2019 and December 2020, AND how are the card schemes going to charge the issuers and acquirers? 

CTMfile take: As always, interchange rates are going to be unclear, all corporates can do is keep insisting on clarity and consistency.

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