No Deal Brexit, what does this mean for your merchant fees?
Stu Holliday
Forward thinking leader, sales specialist, understands if you look after people, people will look after you.
Come the 29th of March 2019, Great Britain and Northern Ireland leave the EU, but what will this mean to your Merchant rates?
Rates are set inline with EEA tariffs meaning if someone from Germany spends ￡100 with your business, it’s the same rate as someone from Grimsby.
I’ve been watching Brexit unfold for sometime and I predict that if we leave with No Deal EU Debit and Credit card payments will jump up to International rates. How will this affect your business?
If you take a lot of payments from the EU those rates could jump up as high as 3%. Now that might not sound much, but say you take ￡300,000 in EU card payments over 12 months, instead of that costing you around ￡1500 in charges, you will more than likely be paying ￡10500.
This is a cost I would have imagined a lot of people haven’t thought about. This isn’t project fear or me being a “Remoaner” in fact I voted to Leave but I was hoping for a Switzerland style deal.
How can you combat this? Well one way is reducing your current rates for British cards. Most companies are paying between 0.5% to 0.9% on Debit cards and 1.5% to 1.9% on Credit cards. By cutting these costs now you’ll minimise the hit your company will take, and if there is a deal you’ll have the better rates for EEA cards too.
If you have any further questions on this matter please email me [email protected] or speak with your current supplier.
Have a great week.
Stu Crampsie