Visa plans to increase online interchange fees for UK customers buying from EU firms
Visa – the UK’s biggest debit card provider – is reportedly planning to increase fees on purchases made by British customers from most of Europe.
The payments giant is preparing to inform its 4,000 clients that the interchange fees will be hiked to 1.5 per cent for online credit card payments, Sky News reported.
Meanwhile, the rate for debit card transactions will jump from 0.2 per cent to 1.15 per cent.
Credit and debit card companies say they levy the interchange fees on merchants’ banks to cover the costs of card services, security and innovation.
The hike in interchange payments will predominantly affect online purchases with EU-based retail, hospitality and travel firms, the broadcaster said.
Visa has reportedly notified regulators of the planned changes, which will bring it in line with rival payments processor Mastercard which announced a similar move in January.
The firms are able to increase the fees they charge in the UK because of Brexit, as the EU regulates the level of fees within the trading bloc.
Visa declined to comment.