Mastercard to raise fees for UK customers buying from EU because of Brexit

jaybeetoo

Mastercard is to raise fees for UK customers buying from the EU from October because of Brexit. It will charge 1.5 per cent of the transaction value for every online credit card payment from the UK to the EU, up from 0.3 per cent. For debit card payments the fee will increase from 0.2 per cent to 1.15 per cent, the Financial Times said.

Yet another benefit of Brexit.

London7766551

"Because of Brexit" is a very deliberately charged political induced wording. What is the actual reason? If it is a result of the UK leaving the EU, what is the actual cause of the charge increase? does MasterCard have to pay more in transaction fees?

Right so it seems Mastercard will no longer apply an EU limit on charges that were introduced in 2015. I might remind people of the results of this regulation.

Jumping the gun
Ahead of the EU introducing interchange fee regulation later this year, Visa's implemented the new 0.2% cap on debit interchange fees from this month. 
But that means they'll now charge up to 50p for a debit card transaction instead of around 8p before.
That's because up until now debit charges tended to be a set fee, but if they're set as a percentage, they'll increase as the purchase value increases.
But for Visa, that's now more than six times the fees they charged before March.
Visa argue they could have charged even more if they wanted and the 50p maximum charge was their idea.
More worryingly Visa have chosen not to introduce the 0.3% cap on credit cards early - fees still range from 0.65% to 1.70%.

https://www.choose.co.uk/news/cap-interchange-fees-credit-debit-cards-eu.html

It remains to be seen if Mastercard will reduce other charges that were hiked previously as a result of this regulation. 

couriervanman

jaybeetoo said:

Mastercard is to raise fees for UK customers buying from the EU from October because of Brexit. It will charge 1.5 per cent of the transaction value for every online credit card payment from the UK to the EU, up from 0.3 per cent. For debit card payments the fee will increase from 0.2 per cent to 1.15 per cent, the Financial Times said.

Yet another benefit of Brexit.

Small price to pay.......we are now free of the EU 

[Deleted User]

London7766551 said:

"Because of Brexit" is a very deliberately charged political induced wording. What is the actual reason? If it is a result of the UK leaving the EU, what is the actual cause of the charge increase? does MasterCard have to pay more in transaction fees?

Right so it seems Mastercard will no longer apply an EU limit on charges that were introduced in 2015. I might remind people of the results of this regulation.

Jumping the gun
Ahead of the EU introducing interchange fee regulation later this year, Visa's implemented the new 0.2% cap on debit interchange fees from this month. 
But that means they'll now charge up to 50p for a debit card transaction instead of around 8p before.
That's because up until now debit charges tended to be a set fee, but if they're set as a percentage, they'll increase as the purchase value increases.
But for Visa, that's now more than six times the fees they charged before March.
Visa argue they could have charged even more if they wanted and the 50p maximum charge was their idea.
More worryingly Visa have chosen not to introduce the 0.3% cap on credit cards early - fees still range from 0.65% to 1.70%.

https://www.choose.co.uk/news/cap-interchange-fees-credit-debit-cards-eu.html

It remains to be seen if Mastercard will reduce other charges that were hiked previously as a result of this regulation. 

Strictly speaking it's to do with exiting the EEA not the EU.
Before what anyone says, that was not on any ballot paper and you can do trade deals whilst part of the EEA.

London7766551

dahj said:

London7766551 said:

"Because of Brexit" is a very deliberately charged political induced wording. What is the actual reason? If it is a result of the UK leaving the EU, what is the actual cause of the charge increase? does MasterCard have to pay more in transaction fees?

Right so it seems Mastercard will no longer apply an EU limit on charges that were introduced in 2015. I might remind people of the results of this regulation.

Jumping the gun
Ahead of the EU introducing interchange fee regulation later this year, Visa's implemented the new 0.2% cap on debit interchange fees from this month. 
But that means they'll now charge up to 50p for a debit card transaction instead of around 8p before.
That's because up until now debit charges tended to be a set fee, but if they're set as a percentage, they'll increase as the purchase value increases.
But for Visa, that's now more than six times the fees they charged before March.
Visa argue they could have charged even more if they wanted and the 50p maximum charge was their idea.
More worryingly Visa have chosen not to introduce the 0.3% cap on credit cards early - fees still range from 0.65% to 1.70%.

https://www.choose.co.uk/news/cap-interchange-fees-credit-debit-cards-eu.html

It remains to be seen if Mastercard will reduce other charges that were hiked previously as a result of this regulation. 

Strictly speaking it's to do with exiting the EEA not the EU.
Before what anyone says, that was not on any ballot paper and you can do trade deals whilst part of the EEA.

Does the EEA require free movement of people? I'd suggest this is why it was a no go.
Please, we had four years or it. The election of 2019 was clear. It doesn't matter if people agree with it or not.

finalfantasist

Hopefully, companies will be as quick to hike prices now this legislation no longer applies as they were to lower prices when it was introduced...

I somehow doubt it though.

[Deleted User]

London7766551 said:

dahj said:

London7766551 said:

"Because of Brexit" is a very deliberately charged political induced wording. What is the actual reason? If it is a result of the UK leaving the EU, what is the actual cause of the charge increase? does MasterCard have to pay more in transaction fees?

Right so it seems Mastercard will no longer apply an EU limit on charges that were introduced in 2015. I might remind people of the results of this regulation.

Jumping the gun
Ahead of the EU introducing interchange fee regulation later this year, Visa's implemented the new 0.2% cap on debit interchange fees from this month. 
But that means they'll now charge up to 50p for a debit card transaction instead of around 8p before.
That's because up until now debit charges tended to be a set fee, but if they're set as a percentage, they'll increase as the purchase value increases.
But for Visa, that's now more than six times the fees they charged before March.
Visa argue they could have charged even more if they wanted and the 50p maximum charge was their idea.
More worryingly Visa have chosen not to introduce the 0.3% cap on credit cards early - fees still range from 0.65% to 1.70%.

https://www.choose.co.uk/news/cap-interchange-fees-credit-debit-cards-eu.html

It remains to be seen if Mastercard will reduce other charges that were hiked previously as a result of this regulation. 

Strictly speaking it's to do with exiting the EEA not the EU.
Before what anyone says, that was not on any ballot paper and you can do trade deals whilst part of the EEA.

Does the EEA require free movement of people? I'd suggest this is why it was a no go.
Please, we had four years or it. The election of 2019 was clear. It doesn't matter if people agree with it or not.

EEA membership does need freedom of movement yes. Another utter non-issue drummed up as major by the racists who couldn't cope with a waitress or plumber with a foreign accent, who believed all the lies about people being given free houses, thousands of pounds of benefits etc. 
2019 is irrelevant, 2016 is all that matters - Johnson, Farage, Hannan etc etc etc all said we would still be in the single market if we voted leave, so charges like this wouldn't have been an issue

London7766551

Deleted_User said:

London7766551 said:

dahj said:

London7766551 said:

"Because of Brexit" is a very deliberately charged political induced wording. What is the actual reason? If it is a result of the UK leaving the EU, what is the actual cause of the charge increase? does MasterCard have to pay more in transaction fees?

Right so it seems Mastercard will no longer apply an EU limit on charges that were introduced in 2015. I might remind people of the results of this regulation.

Jumping the gun
Ahead of the EU introducing interchange fee regulation later this year, Visa's implemented the new 0.2% cap on debit interchange fees from this month. 
But that means they'll now charge up to 50p for a debit card transaction instead of around 8p before.
That's because up until now debit charges tended to be a set fee, but if they're set as a percentage, they'll increase as the purchase value increases.
But for Visa, that's now more than six times the fees they charged before March.
Visa argue they could have charged even more if they wanted and the 50p maximum charge was their idea.
More worryingly Visa have chosen not to introduce the 0.3% cap on credit cards early - fees still range from 0.65% to 1.70%.

https://www.choose.co.uk/news/cap-interchange-fees-credit-debit-cards-eu.html

It remains to be seen if Mastercard will reduce other charges that were hiked previously as a result of this regulation. 

Strictly speaking it's to do with exiting the EEA not the EU.
Before what anyone says, that was not on any ballot paper and you can do trade deals whilst part of the EEA.

Does the EEA require free movement of people? I'd suggest this is why it was a no go.
Please, we had four years or it. The election of 2019 was clear. It doesn't matter if people agree with it or not.

EEA membership does need freedom of movement yes. Another utter non-issue drummed up as major by the racists who couldn't cope with a waitress or plumber with a foreign accent, who believed all the lies about people being given free houses, thousands of pounds of benefits etc. 
2019 is irrelevant, 2016 is all that matters - Johnson, Farage, Hannan etc etc etc all said we would still be in the single market if we voted leave, so charges like this wouldn't have been an issue

The mistake is to label anyone who has concerns about immigration as a racist. But still people make the mistake.

I can only speak from personal experience. My father for example, works on building sites. It is (or was) common for the building companies to hire large numbers of EU migrants from such countries as Romania (previously Poland) and pay them peanuts. The EU workers were stuffed into illegal sub let properties, sheds or in some cases even on the site itself. Because the company could do this and seemly get away with it, the wages paid to British workers either stalled or began to fall where it was relevant. Or they were simply not hired at all. It is (or was) also the case that British companies hire EU citizens, again mostly from countries such as Romania to work in the UK, however they pay Romanian wages, base the staff in Romania and fly them over to the UK for fixed periods and then send them back. The process is repeated again and again. That way they get the work done in the UK but don't have to pay very much. In addition you have companies also paying for chartered flights full of EU migrants to come into the UK and work on very low wages. If you were directly effected by any of these issues, then you would probably want such immigration to stop. Most people that throw the racist word about, when they hear someone saying they voted Brexit, is by people that either live in the hills and effectively in a bubble, or are very wealthy and do not have to fact such issues with their jobs etc. I am not saying everyone who voted leave was not racist, there certainly was, but it is a not a good thing to paint everyone with the same brush. And some problems were amplified.

2019 is irrelevant? why it was a democratic election. Those are some of the most dangerous words ever uttered on this forum. And it is factually incorrect to state those on the leave side said we would be in the single market. Different people said different things. The PM stated a number of times that if we voted leave, we would leave both. Regardless of that, the 2019 election made clear what the outcome would be if the mandate was given. If you want to do a Trump, that is fine by me, but ask yourself why. You either agree with democracy or you don't.

grumpyoldwoman

London7766551 said:
It is (or was) common for the building companies to hire large numbers of EU migrants from such countries as Romania (previously Poland) and pay them peanuts.

My husband felt the effects of this too. He worked as a skilled sub-contractor in the building industry for over 40 years and his wages, in real terms, were about half as much by the time he retired as they were in the 70's.

Roger1

Oh dear, I'm interested in if/whether Mastercard are adding/raising their fee and see this OT discussion.  Anybody got more news of the topic and what Visa are/are not doing?  Thanks.

NoExpertamI

The reason the EU was able to ban roaming charges, or higher interchange fees for intra-EU cross border transactions was that it violated Single Market rules by creating boundaries and penalising people unfairly - violating principles of the Single Market. But because the UK is now out, that argument collapses... the UK competition directorate lacks a similar basis for extra-EU transactions.