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Here's what you need to know about the EU Interchange cap that came into effect in 2015.
Interchange fees for Consumer Card-Based Payments (IFR) center around a cap of Interchange fees for consumer cards across the EU.
There are two reasons behind the regulations:
In practical terms, these changes mean an EU Interchange cap as follows:
The revisions initially applied in the EU, but have since been rolled out in other markets such as Australia.
As well as the Interchange cap, all acquirers now need to give information about the costs associated with each transaction. This includes:
Acquirers must now bill using an Interchange++ pricing structure. This is a pricing model that tracks the Interchange rates.
So, when they go down, your costs go down and you get to see exactly what you're charged for every transaction.
No danger of hidden costs or additional surcharges. If you're an Adyen customer, this is nothing new; we've always billed this way.
In 2016, the second part of the IFR regulations came into effect. This included the following:
You have better things to do with your time than track the latest Interchange cap. So we do it for you.
We’ll keep you informed about any changes that will affect you. Our dedicated team monitors rates and regulations to ensure you get the best deal.
Transparency is central to everything we do at Adyen. Any savings we make for you, are passed on at no extra cost.
We hope this has been helpful and cleared up any questions or confusion about the Interchange fees cap.
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