Switzerland’s Federal Council has opened a public consultation on new rules for card fees. Its goal is to help merchants see what they pay for when customers use cards or Twint.

The draft amends the Federal Act on Unfair Competition. In doing so, the government acts on a mandate from Parliament.

Most cashless payments in Switzerland run through multi-party systems, such as Visa and Mastercard cards and Twint.

Each payment carries several fees. Providers then pass these on to merchants as a single merchant service charge.

Under the draft, providers would list three fees separately. These cover the merchant service charge, the interchange fee and the licence fee of the payment system operator.

In addition, merchants would see these figures before they sign a contract and for as long as it runs.

The plan implements motion 25.3020, which a Council of States committee tabled to ease the burden on SMEs.

According to the government, a clear breakdown would help merchants track their costs and compare offers.

However, the government still has doubts about the need for the rules. The Federal Council maintains that transparent total prices are, in principle, enough to allow effective competition.

In its view, the new duties would create more administrative work for providers. It also says their benefit for competition has not been clearly shown.

For this reason, it has kept the rules as light as possible while still meeting Parliament’s demands. The consultation runs until 11 February 2027.

Featured image: Edited by Fintech News Switzerland, based on image by wayhomestudio via Magnific.