EU to market test Visa Europe's offer to cut debit card fees

European Union regulators will seek third party views on Visa Europe's attempt to avoid a possible fine by cutting its debit card fees.

According to Reuters, Visa Europe proposed to cap its fees at 0.2 percent for cross-border transactions and domestic purchases in nine countries. The offer came after the European Commission told Visa Europe that its fees hindered bank-to-bank competition.

The European Commission said the market test would last a month. If results are positive, then Visa Europe's offer would be legally binding for four years.