Now is the time when, as a result of Brexit, the card brands are recognizing transactions between the EU and UK as cross-border. As of October 15, 2021, Visa and Mastercard are increasing fees on those UK-issued card payments being processed within the European Economic Area (EEA) and for EEA-issued card payments being processed within the UK. The increase in fees to 1.5% is 5X what it had been.
What does this mean for your business? If you process payments in the EU and the UK, you now need to have local acquiring set up in both locations or you will incur these new fees.
This week, we asked business leaders if they have decided to take any action based on these changes, and only 22% have taken steps to avoid these fees – 25% said they did not realize there might be a need to take action and 53% have decided not to take any action at all:
At BlueSnap, we know there is a better way to processing cross-border payments, a way that helps you eliminate avoidable cross-border fees. With our network of global banks, we can help you process your payments with local acquiring in 47 geographies, including both the EU and UK. We can help you strategically leverage the local entities you have to reduce costs while also increasing your authorization rates.