Implications of European interchange regulation

The European Commission and Parliament are contemplating dramatic changes to the European interchange regulation structure and level of card interchange within the European Union.  Although the final form of the regulation and timing for passage and implementation remain uncertain, the impact will be massive.

Interchange levels across Europe vary widely, meaning the impact of the regulation will vary widely

Issuers (in particular), acquirers, schemes, processors and merchants will all be impacted and each will need to formulate a strategic response and to act expeditiously.

A full implementation of new interchange, applied to all volumes, would result in a transfer of circa €5.8 billion annually from issuers to merchants, acquirers, and possibly consumers