1. Interchange fees State of play Payment Systems Market Expert Group 11 April 2014 Krzysztof ŻUREK, 11 April 2014

2. Where are we in the process of adoption? European Parliament Council: Council Responsible committee : ECON - rapporteur : Pablo Zalba – Bidegain (EPP-ES) - ECON report adopted on 20 February 2014 - EP Plenary voted on ECON report on 3 April 2014 Discussions started under Greek Presidency 1 st Council Working Party (CWP): 26 Feb (both PSD2 and IF-Reg) 2 nd CWP: 4 April (IF-Reg only)

3. EP position – main elements 04/06/2016 318 amendments tabled Some 30 were adopted EP endorses the key features of COM proposal and goes further in several provisions: Interchange fee caps of max 0.2% for debit and max 0.3% for credit cards per transaction supported and reinforced Separation of scheme and processing, co-branding, choice of application and HACR provisions accepted Extensions to scope and cross-border acquiring provisions

4. EP position in more detail (1) Scope EP proposes to include not only consumer but also commercial cards of four-party schemes in the scope of the interchange caps Three-party card schemes excluded from caps if their volume of transactions stays below a threshold to be set by the Commission 04/06/2016

5. EP position in more detail (2) Interchange caps In addition to the Commission proposal, additional cap of 7 cents per transaction with a debit card is introduced (= IF of no more than 7 cent for debit card transactions above 35 EUR) IF caps for cross-border and national transactions to apply one year after entry into force of the Regulation 04/06/2016

6. EP position in more detail (3) Cross-border acquiring Interchange fee of the country of the acquirer to apply for c-b transactions (important for non-capped cards) Co-branding and choice of application Retailer can set priority choice at the POS, payer able to override it 04/06/2016

7. Council negotiations Greek Presidency: meaningful progress by June 04/06/2016 First two meetings, initial exchange of views on: Scope of application (four vs three party schemes, consumer vs commercial cards, multilateral vs bilateral interchange) Definitions Interchange fee caps + application time State of play: Open discussion on the entire text, no issues closed yet