In 1992, UK retailers complained about being overcharged for cross-border card transactions. It was later found – in 2007 – that MasterCard had been one of the companies restricting competition.Earlier this month, EU regulators took action and issued a “Statement of Objections” against MasterCard. It accused the card company of using its rules to artificially inflate fees and of over-charging retailers for purchases made by non-EU cardholders. The UK government has also commenced a consultation on interchange fee caps, which is set to come into force at the beginning of 2016. There were almost 10.7 billion credit and debit transactions in Britain in 2013, and the British Retail Consortium has estimated that the caps could save UK businesses up to £480m a year. Read more on payments:
- Majority of the UK’s shoppers willing to pay via wearable devices
- What will Apple Pay mean for British SMEs and the UK’s retail industry?
- Supermarkets fuel use of contactless transactions in the UK
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