According to the Financial Times, Mastercard will increase the fees it applies to British customers using debit or credit cards for purchases made from European Union (EU) based companies more than five times.
In the news published on Sunday, it is stated that Mastercard has notified its customers that the ceiling application introduced by the EU in 2015 is not valid after Brexit. Because payments between the UK and the European Economic Area will now be considered “inter-regional”.
Mastercard will receive a 1.5 percent fee for every online credit card payment from the UK to the EU starting October 15. Now this figure is only 0.3 percent.
The fee for debit card payments will increase from 0.2 percent to 1.5 percent. British banks and other card issuers will benefit from the increase rather than Mastercard.
Consumers may face higher costs if companies decide to charge the fees.