The Credit Card Industry’s New Regulatory Framework: An Ongoing Dialogue across the Ocean

A new regulatory framework is emerging for the credit card industry. The European Union recently issued the Payment Services Directive to implement the Single Euro Payments Area, a set of rules aimed at governing payment services carried out in the European market. Its provisions will also apply to credit card payments. The credit card industry, traditionally self-regulated, has been at the core of several antitrust actions in Europe and abroad, particularly in the United States. The mechanism for determining the interchange fee – as well as terms such as the no-discrimination rule and the honour-all-cards rule – have been investigated and, in several cases, forbidden. As the analysis becomes more sophisticated, more implications emerge for business operators. The aim of this article is to show that the new regulatory framework is made by directive as well as by case law and by the provisions of agencies concerning the credit card industry.