UK payments watchdog proposes cap on interchange fees

It’s a good move, the EEA/EU is regulatorily similar, has good standards of AML/KYC attached to bank accounts and even if the fraud is more (which I reject, it’s probably similar to here and even lower in some countries with generally lower crime/that don’t speak English as a main language due to less phone scammers)

Visa and Mastercard should show evidence how the cost of processing transactions needed to increase by this amount just because we left the European Union. If they can’t; the regulator should fine them for duopoly abuse

Even further I’d say that we should have a domestic card scheme to ensure we’re not reliant on a duopoly and as a matter of security - visa/mastercard could be attacked at once and take down our entire payments infrastructure bar LINK cash point withdrawals at the minute. There’d be a lot more in the ways of having to attack local networks at once

The EEA/EU is virtually regulatory identical and has the same standards of AML/KYC as the UK adopted EEA standards as a member and has retained them.

All the card schemes have done is apply an intra-zone (market) cost . To be fair to Visa/Mastercard - costs clearly increased as the UK is no longer part of the EEA and therefore becomes gradually more non-compliant with EEA rules and became a separate market from the EEA due to Brexit.

Why would this change how much it costs for an EU card to be processed here? Maybe UK cards in the EU as we diverge and deregulate but the other way around seems irrelevant lol

Since 2020 the UK and EEA are now different regulatory zones?!
This extra administration costs $$$ and just is another Brexit Brucey Bonus lol

and? the standards are largely identical. the only difference is visa process the transaction from Britain instead of from wherever they had setup shop before… lol

Weren’t you against this sort of thing on Discord? :joy:

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In principle I am against interchange caps, it doesn’t mean I can’t acknowledge that the system is what it as and if they’re going to go the route of trying to minimise payment fees as much as possible, they shouldn’t allow a mega loophole that raises our export costs to our closest neighbour

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Suspect that’ll be the end of the “0% FX” goldrush then.

Why would it? It’s not an EU cap on British cards unless I misunderstand? It’s a UK cap on EU card fees

Doesn’t matter, now two different regulatory zones - EEA and GB

It’s an excuse. Not an indication of massive increase in cross-border processing costs

I appreciate that as a Brexiteer you don’t want to accept it has costs but it does. They don’t go away simply because you want them to.

I don’t disagree it adds cost. I just don’t think the scale of the cost increases are justified. It’s gouging.