Information page on changes to the payment card market – Guidance

On 18 December 2005, it was reported that Arion Banki, Íslandsbanki, Landsbankinn, Borgun and Valitor had each entered into a settlement with the Competition Authority regarding its investigation into restrictive practices in the payment card market.

The aforementioned settlements are intended to lead to significant changes in the payment card market. Their main purpose is to ensure a level playing field for competitors in transaction acquiring and payment card issuing, and to reduce the risk of conflicts of interest in the activities of financial institutions in the payment card market, to promote greater efficiency in payment card services by creating the basis for stronger customer oversight and otherwise promoting more effective competition in the field of card issuance and acquirer services.

It is important that sellers and consumers are informed of the changes and exercise the necessary restraint. This information page provides access to information about the above-mentioned agreements and the actions they involve.

About the ongoing changes:

• News, 18 December 2014, Significant changes in the payment card market – Banks and payment card companies reach an agreement with the Competition Authority.
• News, 30 April 2015, Changes to the payment card market for the benefit of consumers and businesses.
• Decision of the Competition Authority No. 8/2015, Changes to the structure and implementation of the payment card market.
• Letter of introduction to stakeholders:

Letter to the Consumers' Association, dated 9 June 2015
Letter to the ASÍ, dated 9 June 2015
Letter to the Confederation of Trade and Services, dated 9 June 2015
Letter to the Ministry of Finance and Economic Affairs, dated 9 June 2015
Letter to the Federation of Employers, dated 9 June 2015

Other key decisions on the payment card market:

• Decision No. 8/2013, Misuse of Valitor Ltd.'s dominant market position and breach of the Competition Authority's decision No. 4/2008
• Decision No. 62/2008, Valitor Ltd.'s application for an exemption for a harmonised interchange fee in card transactions.
• Decision No. 4/2008, Breach by Greiðslumiðlunar hf., Kreditkort hf. and Fjölgreiðslumiðlunar hf. of the prohibition provisions of the Competition Act.

Reports on competitive conditions in the financial market, including the payment card market:

• Report No. 1/2013, Financial services at a crossroads.

• Report No. 1/2011, Competition in the banking market.