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ESBG paper released on EU cross-border payments, currency conversion charges

ESBG paper released on EU cross-border payments, currency conversion charges

​​​​​​Proposed transparency requirements should be limited to services done by optional service provider only

>> See: ESBG Position Paper

BRUSSELS, 4 September 2018 – ​A new position paper released today by ESBG says that the savings and retail banking association and its members recognise the important and successful steps that have been made towards building a deeper and fairer Single Market, which allows people, services, goods and capital to move freely in an economy. The paper outlines that ESBG is supportive of the objective to strengthen the euro as a single currency. To that end, ESBG welcomes the European Commission's proposal for a Regulation of the European Parliament and of the Council (EC) No 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges. ESBG has also taken note of the ongoing work of the European Parliament and the Council on this proposal, for whom the paper is mainly addressed.

ESBG provides in the document comments and concerns related to the measures proposed to achieve the European Commission's objectives. In ESBG's view, regulatory interventions in market pricing are only justified in cases where market failures are clear and where these are to the detriment of consumers, and only where all other possible regulatory intervention mechanisms have failed.

The paper also indicates that ESBG agrees with the Commission that the proposed extension of the regulation for cross-border payments should be limited to cross-border payments in euro only, and a possible future extension to other currencies can only be justified after a thorough analysis on the proportionality of cost for payment service providers compared to the actual benefits for payment service users. ESBG proposes also to limit the scope of the regulation to consumers only. On currency conversion, ESBG argues that it should be made explicit that only card payment transactions at physical points of sale and automated teller machines are in scope. Also, as outlined in the paper, ESBG sees that the proposed transparency requirements should be limited to the services provided by the optional service provider only.


>> See: ESBG Position Paper

Payments; European Institutions; European Supervisory Authorities (EBA-ESMA)