Mastercard has said that UK shoppers buying from the EU will now be charged five times as much as they were before Brexit, in so-called credit card 'interchange fees', according to reports.
The hike in fees won't come into play until October 15, Charged Retail reported.
Mastercard collects an interchange fee on behalf of banks every time a transaction is made using its cards, which were capped at 0.2% of transaction value by the EU in 2015.
As the UK is no longer part of the EU, the 0.2% cap no longer applies, and Mastercard has raised the fee to 1.15% for customers in the UK, Charged Retail reported.
According to the report, Mastercard's new charges are 'in line' with levels it had agreed with the European Commission in 2019, for transactions from all non-member areas.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.