Fee cap for paying on credit card

The cost of paying with plastic will be cut throughout the EU after European Parliament members voted overwhelmingly to cap their fees.

The agreement comes following a long-running battle with the main card companies that have a near monopoly and which fought against the controls, arguing they would not have the effect of reducing costs.

The European Commission, which drew up the initial proposals, says the cap on fees will save retailers around €6bn a year while consumers should benefit from savings of around €730m a year. However, the cap will not apply to ATM cash withdrawals.