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Unless UK customers get different pricing to EU ones it wont make a difference. The one receiving the funds (in the EU) is the one that is left worse off. The w
by neximo64 6y ago
Unless UK customers get different pricing to EU ones it wont make a difference. The one receiving the funds (in the EU) is the one that is left worse off. The winner is the UK based bank processing transactions..
- cannabis_sam 6y agoIf you ignore volume, sure
- deleted 6y ago[deleted]
- dmos62 6y agoWell normally when I do online shopping price is explicitly the sum of base_product_price, shipping_choice, payment_method. So in my experience, a more expensive payment method translates to more expenses to me, the buyer.
- neximo64 6y agoYour typical shopify store doesn't charge extra for using Amex or a different card provider (or card country). It can only be in the shipping cost.
- throw14082020 6y agoThe additional cost is amortized over all customers.
- djbebs 6y agoSo eu clients will be subsidizing uk clients...
- tomhoward 6y agoOr merchants will add a little more to their GBP prices.
- neximo64 6y agoIf you are a European store, and say you receive in EUR and charge in another currency it is highly disadvantageous to you. The payment processor usually charges a fee to convert the currency. Stripe for example charges 2% to convert (which is worse than the 1.5% interchange fee increase, and is is additive to it). You are significantly worse off in this situation. Also if you are a British consumer simply pay in Euros, and let your card do the conversion for you - you typically get the interbank rate with most modern banks.
- nemetroid 6y agoAssuming that they have GBP prices. When I purchase from abroad, I very very rarely pay in my local currency. The payment processor or (preferably) my bank performs the currency conversion, on my end of the transaction.
- simonh 6y agoWe already get different prices because we use a different currency, so it will just be tucked away in the transaction and currency conversion costs.
- fredley 6y agoI fully suspect us to get different pricing. Until it was banned it was a classic cause of consumer frustration with Ryanair: getting to the payment step, and being charged extra to pay by credit card. I suspect it'll also force many smaller retailers to stop taking card payments again, and requiring cash.
- neximo64 6y agoRyanair most likely will try to use the new open banking push payment technology. This way the payment can't be reversed and its a faster payment under the hood (cheaper than a debit card for them).
- tebbers 6y agoI am really excited about this push technology (example: https://truelayer.com/paydirect https://truelayer.com/paydirect) It seems to me that merchants are paying a ton of money in card fees and waiting 2-3 days for the transaction to settle) whereas actually the transaction could be done for pennies and settle instantly via the UK's very good Faster Payments infrastructure. If this takes off with consumers, Visa and MasterCard are going to see big chunks taken out of their business.
- Jonnax 6y agoSo no protection for the users?
- krona 6y agoOr take visa? Or any other credit provider? Or a debit card? Heaven forbid that we allow payment providers to compete to provide the best service at the cheapest price.
- adimitrov 6y agoVisa will probably follow suit.
- mytailorisrich 6y agoUK customers are alreay starting to get different pricing from EU ones as e-commerce platforms, and everyone else for that matter, adapt to the new rules (UK VAT at point of sale, customs paperwork, etc). That being the case this is just a matter of increasing the price even more for UK customers (or EU customers in the UK), should a business decide it makes commercial sense.
- NicoJuicy 6y agoThe fees are paid by the seller, not the buyer. So the loser seems to be UK shops.
- neximo64 6y agoUK shops will get the normal regime (i.e not 1.5%). It is a UK card payer using an EU shop that this is relevant to.