Cross-border interchange fee
Payments - cards - charges.
Interchange fees or charges relate to credit cards, debit cards, and other cards.
Cross-border interchange fees are interchange fees levied when a card issuer is in a different jurisdiction from the point of sale or the merchant's acquirer.
- Fees increased fivefold following UK's departure from EU
- "We’re carrying out two market reviews to understand whether card payments are working well, and to make sure that businesses, and ultimately consumers, get a good deal...
- Cross-border interchange fees: Mastercard and Visa charge these fees for consumer card transactions where the card issuer is based in either the UK or the EEA, and the merchant’s acquirer and/or point of sale is in the other location.
- In the European Union, these fees are capped by the Interchange Fee Regulation (IFR).
- Following the UK’s departure from the EU, these caps no longer applied to UK–EEA cross-border transactions.
- Mastercard and Visa then raised the interchange fees fivefold for ‘card not present’ (CNP) remote transactions, such as online sales."
- UK Payments Systems Regulator - Annual Plan 2023/24.
- Card not present (CNP)
- Credit card
- Debit card
- Emerging Payments Association
- European Economic Area
- European Union
- Interchange fee
- Interchange Fee Regulation (IFR)
- Payment Systems Regulator (PSR)
- Payments and payment systems
- Processing fee
- Scheme fee