Norwegian FSA Calls for Improved Consumer Choice and Transparency in Combined Payment Card Transactions
The Norwegian Financial Supervisory Authority (FSA) issued an announcement on October 24, 2024, addressing the selection of payment brands when using combined payment cards, such as those with both BankAxept and Visa or MasterCard. The statement highlights that combined cards are widely used in Norway and addresses issues related to their use in digital wallets and physical payment terminals.
Key points from the FSA’s announcement include:
Regulation Framework: Combined cards are regulated under the EU’s Interchange Fee Regulation (IFR), which is incorporated into Norwegian law. Both payers (consumers) and payees (merchants) must be able to choose the preferred payment brand or application when using combined cards.
Consumer Rights: Merchants can suggest a preferred payment brand, but consumers retain the final choice. Any solutions that restrict a merchant’s ability to present their preferred choice, or that hinder consumers from easily exercising their choice, are non-compliant.
Current Issues: The existing method for consumers to choose the payment brand at terminals (using a yellow button) is deemed problematic by the FSA, citing insufficient communication and functionality issues. This method is poorly understood, with few cardholders or merchant staff fully aware of how to use it.
Responsibility for Improvement: Issuers, acquirers, merchants, and technical providers share the responsibility to develop effective and user-friendly systems that respect the rights of both consumers and merchants. Issuers must inform consumers about their rights and how to exercise them, while merchant staff should be trained to assist consumers in choosing the preferred payment brand.
In summary, the FSA is advocating for better, clearer systems that allow both merchants and consumers to make informed brand choices when using combined payment cards.
