NETHERLANDS. Financial institution Interpay has been fined over €30 million by the Dutch Competition Authority for overcharging retailers for the supply of PIN transaction network services.
Banks were also fined €17 million (US$20 million) for violating anti-trust rules, as they had, through elimination of competition, handed the monopoly in that sector to Interpay.
As the credit and debit card go-between of banks and their customers, Interpay was found to have charged retailers “between five and seven times more than could be reasonably expected” for their services.
Kappé International chairman Jacques Parson, who heads the Fair Payment Alliance which lobbied for the change, said: “This announcement reinforces the scope travel retailers have across the EU, and beyond, to achieve a much fairer and transparent framework with the banks and credit card companies. But this can only be achieved by working together as part of a much broader coalition.
“When I first started building the Fair Payment Alliance, many in the industry said their banks had told them they had the lowest rates possible. Now many of those leading companies have examined the true position and are active supporters of the Alliance.”
The Fair Payment Alliance noted that this issue “underlines the significant imbalance between the retailers, the consumers and the dominant position of banks and card companies”.
The industry is now awaiting a decision on a similar case involving MasterCard. The UK’s Office of Fair Trading investigated the company last year, and its preliminary report found that the company’s inter-bank fee system was running foul of national law. A final report is expected shortly.
Both Interpay and the banks are expected to appeal against the Dutch authority’s findings.
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