Bookit/NEC: end of the line for card handling fees?

The CJEU decisions in NEC and Bookit show that the exemption for transactions concerning payments or transfers will not be available simply because a service is essential to trigger a payment. Suppliers of payment processing services should review whether their services fulfil the specific, essential functions of a transfer as understood in the light of the CJEU case law. The CJEU’s suggestion that a single supply may arise in circumstances where separate legal entities make different supplies casts doubt on the scope of the ‘composite supply’ rules, which will not be resolved until the CJEU rules directly on this issue.