INTERCHANGE FEE HIKE CREATING WAVES

摘要

Visa and Mastercard will raise interchange fees on cross-border payments between the UK and the EU in October 2021. The move is being framed as an inevitable outcome of Brexit: the UK's status as a third country in relation to the EU means payments between the two jurisdictions are classed as "interregional" and subject to a different fee structure. Higher payment costs beckon for merchants in both jurisdictions as a result of the change, though issuing banks and other financial institutions that have partnered with the card giants can expect a revenue boost. It also marks another milestone in the ongoing tussle between payment providers, businesses, banks and regulators, over the application of interchange fees and their economic impact.