GRTU writes to PM on exaggerated card charges

The GRTU has written a long letter to the Prime Minister again urging the government to protect retailers and consumers from exaggerated credit and debit card fees and commissions charged by the local banks. The chamber is urging the government to act either directly or through the Malta Financial Servicves Authority and the Office of Fair Trading.

The chamber pointed out that the European Commission had established that the charge paid by retailers for debit card transactions made by consumers should not be higher than 0.01%. Yet the banks in Malta were charging an average of 2% on the value of every transaction including VAT.

The GRTU said it would have expected this issue to be tackled before the euro changeover, more so since the banks were urging consumers to use their cards for payments over the changeover period. The GRTU said charges on the use of credit cards was also exaggerated and abusive. It was unfair that whenever consumers spent Lm100 and paid by credit card, retailers ended up only receiving Lm97. The GRTU pointed to the situation in other countries and decisions by the EU and insisted that Malta should follow a long list of other countries which had substantially reduced charges.