MasterCard to increase fees for UK purchases from EU
1–10 of 26 posts
Re: MasterCard to increase fees for UK purchases from EU
#2This is behind the FT paywall for me, so here is a link to the BBC's article, https://www.bbc.com/news/business-55796426.
Re: MasterCard to increase fees for UK purchases from EU
#3This deal is getting worse all the time.
Re: MasterCard to increase fees for UK purchases from EU
#4Taste the sovereignty!
Re: MasterCard to increase fees for UK purchases from EU
#5The EU introduced a cap on such fees in 2015 after concerns they pushed prices up for consumers and unfairly burdened companies with hidden costs.
While this price increase is 'opportunism' on MasterCard's part, I've seen people argue this isn't a consequence of Brexit, even though ultimately it is. British consumers are no longer protected by the rather "feisty" pro-consumer EU courts and are now at the mercy of the rather less consumer friendly UK courts, so companies like MasterCard will be tempted to "have a go."
One possible consequence of this, especially if Visa decides to join in, is that some companies that are based in the EU for payments (such as Amazon) will open up UK subsidiaries which may actually have a benefit for the UK. Or they might just put their prices up a bit. We'll see..
I have also added this to http://brexitreality.org/ - a spreadsheet of post-Brexit "how it's going" stories which you might find useful or wish to contribute to.
Re: MasterCard to increase fees for UK purchases from EU
#6Seems like an easy fix, obviously MasterCard are showing they are not to be trusted and therefore require regulation. I think they played themselves.
Re: MasterCard to increase fees for UK purchases from EU
#7In practice, I wonder how many companies will pass this 1.2% fee just onto their UK customers versus how many will just eat it (or I guess distribute it among all their customers). In America, our credit card fees are typically double what even the UK is paying now, but almost nowhere passes that just onto card users. It's not worth the hassle and potential outrage.
Re: MasterCard to increase fees for UK purchases from EU
#8Seems like an easy fix, obviously MasterCard are showing they are not to be trusted and therefore require regulation. I think they played themselves.
Regulated by who? UK govt should regulate what Mastercard charges in Europe? Or European govt should regulate what they charge customers outside their region?
Re: MasterCard to increase fees for UK purchases from EU
#9Seems like an easy fix, obviously MasterCard are showing they are not to be trusted and therefore require regulation. I think they played themselves.
> "As a result of the UK leaving the EEA, Mastercard will adapt interchange rates on UK cards to the commitments it gave the European Commission in 2019 for non-EEA card transactions," the company said.
They are regulated, they're just allowed to charge more for EEA to non-EEA than they are EEA to EEA.
Re: MasterCard to increase fees for UK purchases from EU
#10Seems like an easy fix, obviously MasterCard are showing they are not to be trusted and therefore require regulation. I think they played themselves.
Regulation by who?
Since the UK is now isolated (and has spent its goodwill in the EU), MasterCard may reasonably believe they have power enough to do this.
Will the UK government regulate this? A government which is scarcely managing its current responsibilities.