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MEPs vote for EU cap on card fees set to save UK businesses £480mn a year

MEPs have given the final seal of approval to an EU cap on credit and debit card fees that is expected to save UK businesses £480 million a year.

The fees that banks charge retailers for processing shoppers' payments will be capped at 0.2% of the transaction value for debit cards and 0.3% for credit cards.

The cap will apply to all purchases paid for with a card in the EU, whether abroad or on the internet, and is expected to significantly reduce the charges paid by consumers for card payments. It is set to come into force in by October 2015.

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Liberal Democrat MEP Catherine Bearder said:

"For too long, banks have got away with charging retailers excessive card fees and it is consumers who end up paying the price.

"This move will make card fees cheaper, fairer and more transparent for shoppers, whether buying at home or abroad in the EU.

"It will also lower the cost of internet payments and help to create a level playing field for online shopping across Europe."

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