Credit cards companies in Europe facing scrutiny

The article does not mention that many european cards are not
really credit, the sums due are collected each month so the
banks make nothing off of card holders carrying a huge
consumer debt. This is the money maker in the US but
not Europe. So the banks make their money off of card charges.
I hold a gold card in the US and it costs me nothing annually,
in France a similar card costs me over 100 euros.

****



Credit cards companies in Europe facing scrutiny
Reuters, The Associated Press

THURSDAY, APRIL 13, 2006

BRUSSELS The European Commission on Wednesday warned credit card companies
and banks to make changes to the way that they charge consumers and
businesses for transactions.
Â*
Companies that do not comply could face antitrust investigations that could
force them to reform their practices or pay fines.
Â*
A preliminary report by the European Commission found that consumers in
some countries paid up to twice the credit card fees charged in other
countries. Businesses paid up to six times as much, depending on where they
functioned.
Â*
"I am fed up when parties in the market are not behaving like they should
be," said Neelie Kroes, the EU competition commissioner. "I am highly aware,
especially in this sector," she added, that "the consumer is paying far too
much."
Â*
In its first report from a wide-ranging investigation into payment cards in
Europe, the European Commission said that customers were paying too much
because the industry was still split along national lines, making it
difficult for new card providers to enter the market.
Â*
Businesses also suffer when credit card companies charge them for each
customer purchase, leading to higher prices.
Â*
Credit cards are a "very profitable" business, the report said.
Â*
Kroes said that consumers would get a better deal if there was more
competition and if banks started to offer cards to customers in different
countries.
Â*
Kroes singled out MasterCard and Visa, which she said "appear to be abusing
the situation at present."
Â*
But she also criticized banks that issue credit cards, albeit under the
Visa and MasterCard brands, saying the big global players make some 25
percent of their profits from card-related services.
Â*
"Banks are making too much profit and we will face them with the
consequences on payment cards," Kroes said.
Â*
About 23 billion card payments are made each year across the 25-member
European Union, totaling €1.35 trillion, or $1.63 trillion.
Â*
Visa said that differences in fees across the EU depended on a number of
variables. "Existing differentials between member states reflect numerous
factors including levels of market maturity, market size and the nature of
different products in different countries," it said in a statement.
Â*

Hey Earl, asshole, the FBI contacted you yet? Your narcotics
connections are going cause you a lot of problems when they find out
you are the subject of a criminal investigation. Does France have a
witness protection program?

Mais on s'en fout royalement de tes histoires !

"Earl Evleth" a écrit dans le message de news:
...
The article does not mention that many european cards are not
really credit, the sums due are collected each month so the
banks make nothing off of card holders carrying a huge
consumer debt. This is the money maker in the US but
not Europe. So the banks make their money off of card charges.
I hold a gold card in the US and it costs me nothing annually,
in France a similar card costs me over 100 euros.

****



Credit cards companies in Europe facing scrutiny
Reuters, The Associated Press

THURSDAY, APRIL 13, 2006

BRUSSELS The European Commission on Wednesday warned credit card companies
and banks to make changes to the way that they charge consumers and
businesses for transactions.

Companies that do not comply could face antitrust investigations that
could
force them to reform their practices or pay fines.

A preliminary report by the European Commission found that consumers in
some countries paid up to twice the credit card fees charged in other
countries. Businesses paid up to six times as much, depending on where
they
functioned.

"I am fed up when parties in the market are not behaving like they should
be," said Neelie Kroes, the EU competition commissioner. "I am highly
aware,
especially in this sector," she added, that "the consumer is paying far
too
much."

In its first report from a wide-ranging investigation into payment cards
in
Europe, the European Commission said that customers were paying too much
because the industry was still split along national lines, making it
difficult for new card providers to enter the market.

Businesses also suffer when credit card companies charge them for each
customer purchase, leading to higher prices.

Credit cards are a "very profitable" business, the report said.

Kroes said that consumers would get a better deal if there was more
competition and if banks started to offer cards to customers in different
countries.

Kroes singled out MasterCard and Visa, which she said "appear to be
abusing
the situation at present."

But she also criticized banks that issue credit cards, albeit under the
Visa and MasterCard brands, saying the big global players make some 25
percent of their profits from card-related services.

"Banks are making too much profit and we will face them with the
consequences on payment cards," Kroes said.

About 23 billion card payments are made each year across the 25-member
European Union, totaling ?1.35 trillion, or $1.63 trillion.

Visa said that differences in fees across the EU depended on a number of
variables. "Existing differentials between member states reflect numerous
factors including levels of market maturity, market size and the nature of
different products in different countries," it said in a statement.

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