MasterCard hikes interchange for UK online purchases...!

[Andrew BGs]

A 5-fold INCREASE has been imposed on debit & credit interchange fees charged for UK online purchases from the EU....
Prior to Brexit, UK merchants benefitted from a 0.3% cap on credit card interchange (0.2% debit) but these are now deemed to be 'inter-regional' since the withdrawal from Europe
Credit will jump to 1.5% & debit to 1.15% on 15 October which is another blow for UK merchants & consumers - time to think about your payment charges perhaps....

 

[Mr D]

An increase of 1.2 percent on total costs.
Not even in the top 5 percentage increases my business usually has in a year.

It's a minor increase. Absorb the cost out of your profits or else pass it onto your customers one way or another.

Or stop using that card for EU purchases. No use of the card, no extra fees to pay.

 

[Highland Spring]

I wonder if anyone will start to refuse to take Mastercard?

 

[WebshopMechanic]

These guys know that the writing is on the wall. The credit card companies, banks, payment processors and PayPal have had it far too easy for far too long ripping people offer on both sides.

The future is coming (this year) and it is digital payments (a.k.a ******).

In the next year or so, payment gateways will be integrated with cryptocurrency payments. These payments will be almost instant clearance (3-5 seconds), from anywhere in the world, on any device and be a fraction of the cost.

I'm not just talking about Bitcoin either because that is actually old tech in the ****** space.

You will be able to accept any one of a 100+ different currencies that will then be converted into your local 'digital' currency. This will completely transform global ecommerce and make cross-border payments frictionless.

The World Economic Forum, the IMF and the European Central Bank are about to 'green-light' the use of digital currencies in the next couple of months.

Sorry for the little rant but the future is actually going to be very exciting. Brexit is a current unhelpful stumbling block but I believe ecommerce businesses will be able to flourish and fees will eventually drop as new disruptors come into the market.

 

[Simon-TP]

A 5-fold INCREASE has been imposed on debit & credit interchange fees charged for UK online purchases from the EU....
Prior to Brexit, UK merchants benefitted from a 0.3% cap on credit card interchange (0.2% debit) but these are now deemed to be 'inter-regional' since the withdrawal from Europe
Credit will jump to 1.5% & debit to 1.15% on 15 October which is another blow for UK merchants & consumers - time to think about your payment charges perhaps....

It is merchants in the EU selling to UK customers that will see the increase. UK merchants for now at least will still have their existing Interchange rates for UK/EU.