Shoppers to pay extra fees for buying EU goods using Mastercards01/25/2021
SHOPPERS may have to pay extra fees when buying goods from the European Union with Mastercard.
The payments network company will increase fees five times what they are now, sparking fear among MPs that they could be pushed onto consumers, reports the Financial Times.
Mastercard and Visa charge firms a fee on behalf of banks every time a credit or debit card payment uses their network.
The EU introduced a cap in 2015 to stop firms being landed with hidden fees with hundreds of millions of euros and higher costs for shoppers.
But Mastercard has told companies the limit no longer applies any since the UK left the EU on December 31.
From October 15, Mastercard will slap a charge worth 1.5% of the transaction value on every online credit card payment from the UK to the EU, up 0.3% on what the network charges now.
For debit card payments, the fees will go up from 0.2% to 1.15% of the transaction value.
As the charges are on behalf of banks and card issuers, Mastercard won't directly benefit from the increase.
More to follow…
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