The European Commission has warned Mastercard – and by extension all the other credit and debit card companies – to change its fee structure within the next six months or face a fine. The ruling affects cross-border payments and transactions in eight EU countries – Ireland, Italy, Belgium, the Czech Republic, Latvia, Luxembourg, Malta and Greece – all of which tailor their rates to Mastercard's international rate.

Currently, the UK's retailers are not affected, but the Office of Fair Trading (OFT) is investigating credit and debit card fees and the FPB is urging the watchdog to heed the EU's ruling and follow suit.

The FPB's Senior Member Services Representative, Philip Moody, warned smaller retailers in the UK to beware of a backlash from the credit card companies.

"If the credit card companies' revenue goes down in one area, they will probably look to increase it in another," he said. "This could mean that the cost of offering merchant services goes up and that these costs spread to businesses and their customers."

"The FPB hopes that the interests of UK-based businesses are taken into account, and that their credit card payment costs are also reduced," he added.

There are more than 140 million payment cards in circulation in the UK alone, so the potential both to reach new customers and make the most of existing ones by taking advantage of credit and debit card payments is huge. The FPB's discounted service offers credit card rates from as little as 1.14%, rates for Maestro and Solo cards from only 15p per transaction, and provides three months free card terminal rental – including polling, maintenance and authorisation calls above agreed limits. Cutting the card companies' fees would make their use even more attractive to smaller retailers.

If you are interested in finding out more about the FPB's discounted credit and debit card rates, complete the online application form at www.fpb.org or contact the FPB's member helpline on 0845 130 1722.