Visa and Mastercard are facing scrutiny from regulators over increasing payment costs between post-Brexit UK and the EU. The payments giants are blaming the rise in costs on increased competition – China’s Unionpay for one – and fraud from cross-border payments transactions. The rising costs are harming small businesses who rely on cross-border sales as a main source of revenue, but also feed the competition between the card networks themselves as the higher interchange fees attract more issuing banks to each network. At a high-level, the UK Treasury is trying to determine whether the asserted claims of rising fraud justify the rise in costs.
Visa and Mastercard Blame Fraud for Post-Brexit Fee Increases | Financial Times