K. Hatzidakis: 50% cut in POS fees for transactions up to 10 euros – Commission at 0.5%

Fees on microtransactions are reduced by law POSas announced the Minister of National Economy and Finance Kostis Hatzidakis, speaking to SKAI. Today the average fee in plastic money for such transactions is close to 1% or so and with the legislation coming within the week (or next week at the latest) it should be reduced to 0.5% horizontally for transactions up to 10 euros.

In essence, one enters 0.5% cap on commission for POS payments in micro-transactions that applies to all involved.

The ceiling will concern the little ones

According to “H” information, the regulation will not go into the details of the distribution of the individual commissions that will build the 0.5% between banksclearing houses and international payment schemes, but will define the final, cumulative amount of the total commission which cannot exceed 0.5% of the value of the transaction.

According to the same sources, the regulation will not apply horizontally to all businesses for transactions up to 10 euros, but only to the “small players” who will be defined by KAD. That is, it will concern kiosks, taxis, mini markets, etc. It will not concern, for example, supermarkets, even for purchases under 10 euros.

It is recalled that today the links in the chain that collect commissions from a transaction with plastic money are the banks, the clearing providers, but also the international payment schemes Visa and Mastercard which appear to have the highest share of commissions in this tripartite scheme.

In any case, the legislative provision will horizontally reduce – from its publication in the Official Gazette onward – commissions and charges on transactions up to 10 euros to 0.5%.

The last one expires at the end of April deadline for interfacing cash registers with POS and the Minister of National Economy and Finance reiterated that there will be no extension.

Annunciation at Delphi

As Mr. Hatzidakis noted, the previous period the owners of small businesses, such as kiosks, taxis, mini markets, rightly complained, as they are burdened with commissions of 1%, even for transactions under 10 euros. Those supplies, he said, would be halved, as found impossibility of agreement between the parties involved that impose commissions (banks, acquirers and international payment schemes), noting that the banks were the most “easy” in the relevant discussion and were willing to proceed with reductions.

It is recalled that Mr. Hatzidakis had announced the legislative regulation with his interview in 9th Delphi Economic Forum, in the event that there is no outcome in the context of the talks then underway with the representatives of the market, on the voluntary reduction of commissions on transactions of small value.

“We have been in contact with all the market players and there is a good mood in the direction of the reduction for small transactions, however if there are not the developments we want there will be a legislative initiative by the government in the next period”, he said and underlined the importance of direct payment systems such as IRIS.

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