Call to cut cost of electronic payments for businesses

Belgium’s deputy prime minister and minister for the economy and employment, Pierre-Yves Dermagne, wants small shops to pay less for payments made by card instead of cash.

He is proposing to reduce the cost of electronic payments from €0.056 to €0.02, which is the charge made per transaction in the Netherlands.

“In the Netherlands, transaction costs have been cheaper as there were more electronic purchases there than in Belgium,” explained Sophie Heuskin of the small business and independent workers union the UCM’s research department.

"But now Belgium is making a similar amount of transactions, we can apply similar commissions."

The UCM expert added that banks would not necessarily lose out, as the number of electronic transactions made in Belgium continues to rise.

Dermagne is also calling to introduce an electronic payment comparison tool, following calls for a general debate on transparency in the costs of electronic payment.

The Neutral Independents Union (SNI) said it was pleased that its demand made more than a year ago has now been agreed.

However, it argued that the electronic payment comparator should have been a prerequisite before introducing the obligation last July for small businesses to offer electronic payments.

Dismissing concerns that the proposal would impact the consumer, Heuskin said: “The measure is really orientated in favour of traders and the self-employed.

"We don’t think consumers will be affected as, although it is a good step, the minister’s proposal is really minimal.

"[The price cut] will be around three to four cents, so I don’t think the reduced cost will be passed on to the consumer."

The proposal will now be assessed by the Financial Services and Markets Authority (FSMA), the consumer association Test-Achats and the financial advisory group Febelfin. A decision is expected before the end of June.