UK buyers will not be affected by fees when placing orders with EU companies
Mastercard has announced it will increase its UK to EU interchange fees from October 2021, following Brexit.
This way, for every online credit card payment the company will charge 1.5% of the transaction value. That’s up from the current 0.3%, and 1.15% for debit card payments, up from 0.2%.
Mastercard charges an exchange fee, usually paid by the merchant’s bank to the cardholder’s bank. The increase in fees is due to the UK no longer being part of the EU and, therefore, will not benefit from the 2015 cap on exchange fees.
This change only applies to e-commerce transactions with EEA merchants and all physical transactions remain the same as transactions made by European cardholders in stores in the UK.
We’ve reported that 18% of UK exporters have already changed their merchant partners to move their business outside the EU. It’s indicating that businesses are actively hunting for new export markets. An approximated £50 billion export volume was redirected following the Brexit referendum in June 2016.