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Why would they want to do that? The company receiving the money (in the EU) is the one that receives less money. The UK bank receives a higher interchange.

kzrdude 6y ago
They would want to do that to give their own citizens a fair price for the service.
- neximo64 6y ago
  Your typical shopify store charges the same stuff for everyone, you pick the country and pay at checkout. The only differentiator is shipping costs. So i don't understand the meaning when you say customers. The loser is the EU merchant shop and the winner is the British bank. Everyone on this thread is jumping to the conclusion its some Brexit mania without looking into the detail of who receives the interchange and who pays it.
  - kzrdude 6y ago
    That sounds very short sighted? Everything has to carry its own costs. If fees rise, prices will probably have to rise to compensate.
  - Hamuko 6y ago
    Why wouldn't the EU stores just jack up the UK shipping prices? You probably already need to do more just to get something sent out to the UK. Might as well lump all those costs in the shipping.
- avianlyric 6y ago
  Most citizens will never notice the price difference. Any costs that get passed on will be rolled up into extra costs of doing business with U.K. now that we’ve left the EU. The big ticket items there will be VAT, and customs duties, which are measured in 10’s of %. So realistically customers will never know to complain about this fee increase once the news cycles ends.
  - neximo64 6y ago
    In the UK payment is moving away to even cheaper methods using Open Banking with Faster payments, which is technically near free - a bit like Giropay. So on the payment end there is an alternative coming better for merchants anyway.
    - avianlyric 6y ago
      I personally doubt that Open Banking is the answer here. Most open banking payment run over Faster Payments, which is owned by a company called VocaLink, which is in turn owned by (drum roll please) MasterCard. If Open Banking takes off, then expect MasterCard to start increasing their Faster Payments fees (they exist, your bank just eats the cost). But first you need to convince customers to give up the protections offered by Debit/Credit cards. There’s basically 0 recourse for a consumer to get their money back if they’re scammed via Open Banking. Unlike Credit/Debit cards where chargebacks are an option.
      - neximo64 6y ago
        Mastercard are likely to not change the FPS fee as Vocalink is easy to supplant. There are bigger issues at play set out for this coming decade. For example card not present transactions are going to have their fees jacked up (internet transactions) vs in store ones. The real battle will be against this. Chargebacks not being possible are beneficial too, it depends on your merchant. For instance topping up your brokerage account with chargebacks possible would be very problematic.
        avianlyric 6y ago
        > Mastercard are likely to not change the FPS fee as Vocalink is easy to supplant. What on earth makes you think this is true? Do you have any idea how complex it is to set up an inter-bank payment scheme? Vocalink are not even remotely easy to supplant, banks will just pass the extra costs onto merchants and wash their hands of it. There’s no profit in providing free financial services. > For example card not present transactions are going to have their fees jacked up No doubt. MasterCard and Visa are both looking to make sure profits stay healthy. But if there’s something I know for sure, it’s that both companies know how to extract their pound of flesh. They’re masters of creating new fees, if they want to increase fees on card not present, then they will. If they can’t do it directly, they’ll find a way to do it indirectly. > For instance topping up your brokerage account with chargebacks possible would be very problematic. Chargebacks are not a simple one-size-fits-all thing. There are hundreds of pages of rules outline when you can and can’t raise chargebacks. There are also ways to allow merchants to immunise themselves against chargebacks. It’s already possible to top up brokerage accounts using a Credit/Debit card. That’s because carve outs already exist in the chargeback rules which make it very difficult for a customer to raise a valid chargeback in those scenarios.
- djbebs 6y ago
  Idk, sounds like a good sneaky way to introduce tarifs
xiphias2 6y ago
Still, the solution is quite easy, just increase the price for the GBP version. It can be just added to the currency conversion in the commerce system. I don't understand how the price can be the same if the currencies are different.
- neximo64 6y ago
  Modern UK banks like Monzo tell you to pay in the currency of the store and let them do the conversion for you (at the interbank rate).. The only way really is to charge more for shipping.
  - Hamuko 6y ago
    How many consumers use a solution like that? Because if it's only a tiny percentage of all people, you could just raise the GBP prices with a comfortable margin and have those subsidize the rest.
  - xiphias2 6y ago
    Cool, that's another great way to pass on costs to consumers. The end result is the same: it's not that hard to do it.
    - neximo64 6y ago
      I'm a bit unclear on how. So you have your ecommerce store charging in EUR, and you pay with your Monzo/Starling/Revolut whatever and get the interbank rate to GBP. How is the store going to pass costs onto consumers in a way other than shipping costs? You can't use currency because the bank has given you the interbank rate (and cut off the card's conversion fee). Also btw if you let your card processor convert currency for you they're going to be even worse off as an EU store owner - Stripe charges 2% extra to convert your currency for example. So your fees are now going to be over 3.5%.. best to leave it in EUR. You need to run an ecommerce store to understand its very hard to ask a customer their country first. Unless you're Apple.. Also when you run an ecommerce store you want US customers too, so your UK problem is equivalent to your US problem.

kzrdude 6y ago

They would want to do that to give their own citizens a fair price for the service.

neximo64 6y ago
Your typical shopify store charges the same stuff for everyone, you pick the country and pay at checkout. The only differentiator is shipping costs. So i don't understand the meaning when you say customers. The loser is the EU merchant shop and the winner is the British bank. Everyone on this thread is jumping to the conclusion its some Brexit mania without looking into the detail of who receives the interchange and who pays it.
- kzrdude 6y ago
  That sounds very short sighted? Everything has to carry its own costs. If fees rise, prices will probably have to rise to compensate.
- Hamuko 6y ago
  Why wouldn't the EU stores just jack up the UK shipping prices? You probably already need to do more just to get something sent out to the UK. Might as well lump all those costs in the shipping.
avianlyric 6y ago
Most citizens will never notice the price difference. Any costs that get passed on will be rolled up into extra costs of doing business with U.K. now that we’ve left the EU. The big ticket items there will be VAT, and customs duties, which are measured in 10’s of %. So realistically customers will never know to complain about this fee increase once the news cycles ends.
- neximo64 6y ago
  In the UK payment is moving away to even cheaper methods using Open Banking with Faster payments, which is technically near free - a bit like Giropay. So on the payment end there is an alternative coming better for merchants anyway.
  - avianlyric 6y ago
    I personally doubt that Open Banking is the answer here. Most open banking payment run over Faster Payments, which is owned by a company called VocaLink, which is in turn owned by (drum roll please) MasterCard. If Open Banking takes off, then expect MasterCard to start increasing their Faster Payments fees (they exist, your bank just eats the cost). But first you need to convince customers to give up the protections offered by Debit/Credit cards. There’s basically 0 recourse for a consumer to get their money back if they’re scammed via Open Banking. Unlike Credit/Debit cards where chargebacks are an option.
    - neximo64 6y ago
      Mastercard are likely to not change the FPS fee as Vocalink is easy to supplant. There are bigger issues at play set out for this coming decade. For example card not present transactions are going to have their fees jacked up (internet transactions) vs in store ones. The real battle will be against this. Chargebacks not being possible are beneficial too, it depends on your merchant. For instance topping up your brokerage account with chargebacks possible would be very problematic.
      - avianlyric 6y ago
        > Mastercard are likely to not change the FPS fee as Vocalink is easy to supplant. What on earth makes you think this is true? Do you have any idea how complex it is to set up an inter-bank payment scheme? Vocalink are not even remotely easy to supplant, banks will just pass the extra costs onto merchants and wash their hands of it. There’s no profit in providing free financial services. > For example card not present transactions are going to have their fees jacked up No doubt. MasterCard and Visa are both looking to make sure profits stay healthy. But if there’s something I know for sure, it’s that both companies know how to extract their pound of flesh. They’re masters of creating new fees, if they want to increase fees on card not present, then they will. If they can’t do it directly, they’ll find a way to do it indirectly. > For instance topping up your brokerage account with chargebacks possible would be very problematic. Chargebacks are not a simple one-size-fits-all thing. There are hundreds of pages of rules outline when you can and can’t raise chargebacks. There are also ways to allow merchants to immunise themselves against chargebacks. It’s already possible to top up brokerage accounts using a Credit/Debit card. That’s because carve outs already exist in the chargeback rules which make it very difficult for a customer to raise a valid chargeback in those scenarios.
djbebs 6y ago
Idk, sounds like a good sneaky way to introduce tarifs

xiphias2 6y ago

Still, the solution is quite easy, just increase the price for the GBP version. It can be just added to the currency conversion in the commerce system. I don't understand how the price can be the same if the currencies are different.

neximo64 6y ago
Modern UK banks like Monzo tell you to pay in the currency of the store and let them do the conversion for you (at the interbank rate).. The only way really is to charge more for shipping.
- Hamuko 6y ago
  How many consumers use a solution like that? Because if it's only a tiny percentage of all people, you could just raise the GBP prices with a comfortable margin and have those subsidize the rest.
- xiphias2 6y ago
  Cool, that's another great way to pass on costs to consumers. The end result is the same: it's not that hard to do it.
  - neximo64 6y ago
    I'm a bit unclear on how. So you have your ecommerce store charging in EUR, and you pay with your Monzo/Starling/Revolut whatever and get the interbank rate to GBP. How is the store going to pass costs onto consumers in a way other than shipping costs? You can't use currency because the bank has given you the interbank rate (and cut off the card's conversion fee). Also btw if you let your card processor convert currency for you they're going to be even worse off as an EU store owner - Stripe charges 2% extra to convert your currency for example. So your fees are now going to be over 3.5%.. best to leave it in EUR. You need to run an ecommerce store to understand its very hard to ask a customer their country first. Unless you're Apple.. Also when you run an ecommerce store you want US customers too, so your UK problem is equivalent to your US problem.