The legislation is still in place that merchants can’t charge the end consumer though. At least that’s something…
This only applies to e-commerce transactions, so that shouldn’t be an issue.
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They can’t charge the end consumer directly, no. But there’s nothing to stop a merchant slightly increasing prices across the board for everyone, in order to preserve their margin.
It’s a similar principle to shoplifting, where essentially every consumer in a shop is paying for the shoplifters because prices have been set to allow that little bit extra to cover what’s lost through theft.
Not that this means that prices will go down if intercharge fees were removed tomorrow, and a magical solution was found that meant no more shoplifting happens, ever. It is, regrettably, a one-way system where once the consumer has demonstrated they will pay the high price, the merchant will keep any extra profit from subsequent savings instead of passing them on to the consumer (see also: how poorly petrol pump prices actually track the price of crude. Though admittedly in that case there is an outside effect from taxes and duties).
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That’s both so funny and so bleak.
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I already see fees jump with bunq when your outwith the free €500 top up limit the low fee is now high fee for non European cards which uk is now a third country so expect high fees all round when banking and financial services has no deal after brexit cause it was all about physical trade which is a disaster
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My daughter a Monzo customer is currently studying in Dublin, are her transactions likely to be affected?
The fees aren’t paid by the customers. Not directly
We’ll all be affected by higher prices for goods and services but that’s about it
Also, it only applies to online transactions, as far as I am aware.
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You’re correct. It’ll be good for Monzo when people start travelling again, with most airlines etc being non-U.K. based companies I believe.
I doubt it’ll make much difference with larger companies. They’ll just end up doing what Canadian and US companies do and use two acquirers, one denominated in both countries. I.e. A Canadian company will process all cards through a Canadian card acquirer except US binned cards and then process US cards through an American payment provider.
Is this in line with a recent Mastercard hike I seem to recall hearing about?
I know this is in line with mastercard but them choosing the same fee just looks like they are looking for a anti trust.
Intresting to see amex that has never had fee caps on non cobranded cards, amex keeps its discount fees private and are a per industry basis. Amex call them discount rates for some weird reason. Guessing around 3%