PURCHASE, N.Y.—Mastercard plans to increase the fees E.U. firms face to take payments from online shoppers from the U.K. by at least 400%, in a move that could mean higher prices for consumers, The Guardian reported.
Mastercard’s interchange fee is currently 0.3% on credit card payments and 0.2% on debit card payments but it has told EU firms that these will increase to 1.5% and 1.15% respectively by Oct. 15.
The new fees meet a cap for non-EEA cards used for online purchases within the area, which includes Iceland, Liechtenstein and Norway as well as E.U. countries.
The change announced by Mastercard will apply to online sales at shops and businesses based in the E.E.A. that are made on U.K.-issued cards. Travelers will not face the higher rate on face-to-face sales, The Guardian said.
Transactions made by U.K. cardholders in U.K. businesses and shops will not face higher rates.
“As a result of the U.K. leaving the European Economic Area, Mastercard will adapt interchange rates on U.K. cards to the commitments it gave the European commission in 2019 for non-EEA card transactions,” Mastercard stated.