Credit card company MasterCard said Monday that it will charge five times more in so-called interchange fees for UK customers buying online goods and services from EU companies following Brexit.
"As a result of the UK leaving the European Economic Area (EEA), MasterCard will adapt interchange rates on UK cards," the group said in a statement.
When a customer pays a merchant with a credit or debit card, the store's bank pays an "interchange fee" to the cardholder's bank.
Card operators then collect the fees on behalf of banks to process the transaction.
MasterCard stressed that the interchange fee increase would only apply to online sales and would not affect in-store transactions.
The group will raise the credit card fee to 1.5 per cent of the value of each transaction starting October 15, compared with the current level of 0.3 per cent.
The debit card fee will be raised to 1.15 per cent, up from 0.2 per cent.
MasterCard added that consumers "should not feel any impact of changes in interchange fees", and that its own commissions would remain unchanged.
Main competitor Visa has not yet made any announcement on its fee structure.
After Visa, MasterCard is the second largest credit card issuer in the European market.
Britain finalised its divorce from the European Union on January 1, but the nation's hard-fought Brexit trade deal did not encompass the financial services sector.
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Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
UK’s AI plan
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- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
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Match info
Who: India v Afghanistan
What: One-off Test match, Bengaluru
When: June 14 to 18
TV: OSN Sports Cricket HD, 8am starts
Online: OSN Play (subscribers only)
Destroyer
Director: Karyn Kusama
Cast: Nicole Kidman, Toby Kebbell, Sebastian Stan
Rating: 3/5
UAE release: January 31
Results
1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000
2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000
3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
