The European Parliament is likely heading for a spirited debate this week as it considers the latest proposed updates to its Payment Services Directive, according to Euractiv.com. The rule changes are designed to introduce more competition and update the credit and debit card payments landscape, and to cover regulatory and security challenges posed by a range of existing card and new mobile payments services that are expected to grow significantly in Europe over the next couple of years.

A key issue involves multilateral exchange fees that are paid by retailers to a cardholder's bank as part of an electronic transaction. The current European Commission proposal would set new capped levels at 0.2 percent for debit card transactions and 0.3 percent for credit cards.

Some critics contend that proposed rules revisions would water down merchant and consumer benefits, the site said, while card companies also object to a "one-size-fits-all" approach to interchange across Europe.

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