Will CC offerings improve after Brexit?

eskbanker

Malkytheheed wrote: »

I meant i dont want it to go down the pro/anti EU route in general.
For the record I am pro-EU and voted to remain. However, when it comes to this specific issue, I think the EU have WAY over interefered with finnancial offerings. The EU isn't black and white with me. It does some good, does some bad.

Seems a perfectly valid opinion that there's been plenty of EU-wide regulation in financial services, but I don't see any evidence that the UK has been reluctantly dragged into this and it could be that the UK would have preferred even more?

It seems to be widely accepted that weak regulation contributed to the impact of the 2008 global financial crisis in the UK (and subsequent scandals), but the fact that our response to this was in the context of being an EU member doesn't necessarily signify that we'd have chosen to do anything differently if we'd been on our own....

born_again

More competition in the USA leads to more giveaways.

Also leads to more banks going bust. 4 in 2019......

Do not expect to see a relaxation of financial regulations once Brexit is sorted. If anything expect them to get tougher.
FCA & BofE are very keen to ensure that banks are as resilient to any problems going forward.

EU rules have noting to do with "poor rewards from cards and the lack of 0% cards" Market force and profit is what drives these.

If you ask most people what rewards they want to see it will always be "Cashback"

redux

The only EU hold back in this context has been to reduce the wholesale commission rates on credit cards. That's why cashback, points and other promotions have reduced.

US cards have higher fees, and thus can afford to offer incentives.

In the end, American retailers will have allowances for this built into their price structure.

You can gain something from crossing borders, but you might one day find your US cards reviewing things and cutting incentive offers on spending outside the USA.

For the rest of us, the EU measures may ultimately have saved us a small amount, even if we can't see it.

Is Brexit going to make our government deregulate or abolish such rules and let charges for credit card use come back and increase? I hope not.

Edit - especially not with the growth in contactless card use, and its convenience on even low spending, don't want to see a minimum spend requirement

Jayh90

Should allow more things more rewards etc it’s on amex who does.. USA have so much better company’s

Malkytheheed

Jayh90 wrote: »

Should allow more things more rewards etc it’s on amex who does.. USA have so much better company’s

That's my hope anyway. Not a view shared by all for certain. Only people to benefit from the strict rules designed to "protect consumers" here are the retailers. They just pocket the extra rev from lower fees.

Nick_C

Initially at least, all EU law will pass into UK law.

The cap on interchange fees was seen as protecting consumers and something the UK would have supported with the EU. I can't see this being repealed.

redux

I just spoke to one retailer

They are charged half a per cent on up to £750. Three per cent if it's more.

So it would be surprising if any card incentive schemes could add up to much better.

born_again

A thought for the folks that think charging retailers more for transactions will mean better deals for cashback etc...

Well if the retailer is paying more. Will they stand the loss or will they pass it on to the consumer?

Yep you got it.. That's CONSUMERS paying for it.
So all them goodies you think you are getting for FREE. Well you are paying for it when you buy anything.

IvanDP

I did read somewhere, that due to some of the older contracts some retailers have with the card companies, even under current regulations, they actually lose money on smaller transactions.
If the fees were to go up, the prices would have to follow suit for the retailer to be able to actually afford to take cards.

Chasing points/rewards via credit cards is pretty much a waste of time outside the US, and personally, I'd be happy for it to stay that way.

2e0arr

the retaillers issues should be with the card companies and their merchants processing the cards . if they don like taking cards send card customers elsewhere.
slimming world franchisees take cards when slimmers pay their weekly £4.95. how much will the merchant take.