P J Sheehan (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 121: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether European law prohibits the banning of credit card surcharges; and if she will make a statement on the matter. [31051/08]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I have previously advised the House of legal advice received from the Attorney General that specific provisions of the Consumer Protection Act 2007, namely Sections 48 and 49, were not compatible with EU law. In this regard it is important to point out that Sections 48 and 49 prohibit traders from imposing additional charges solely by reason of customers choosing to make payment by one relevant payment method over another and are more comprehensive in their effect than a simple prohibition on credit card surcharges. Accordingly, any interpretation of Sections 48 and 49 as being limited to a prohibition on credit card surcharges would not be correct.

In so far as credit card surcharges are concerned, the Deputy may be aware of the recently promulgated Payment Services Directive, which is concerned with the manner in which payment services are provided throughout the EU. The Directive, whose transposition is the responsibility of my colleague the Minister for Finance, contains particular provisions in relation to payment method charges. Specifically the Directive — whilst stipulating that payment service providers, such as credit card companies, may not prevent retailers from imposing charges for the use of payment instruments, such as a credit card — does give Member States a discretion to prohibit such charges taking into account the need to encourage competition and promote the use of efficient methods of payment. The question as to whether Ireland should exercise this discretion is a matter for the Minister for Finance.