20 JANUARY 2021
1 min read
As of January 2021, the United Kingdom is no longer a part of the European union. As a result, Mastercard is introducing a new Business Service Arrangement (BSA) which will cover transactions between the United Kingdom and EEA countries.
The new BSA will have a significant impact on interchange fees for UK-EEA consumer card-not-present transactions.
Consumer card-not-present transactions between the UK and EEA countries are currently charged 0.20% for debit cards and 0.30% for credit cards. Under the new BSA, intraregional transactions will be charged in line with the interregional capped rates of 1.15% for debit cards and 1.50% for credit cards.
The new Business Service Arrangement will be in effect as of the 15th of October 2021. The new BSA will not impact the existing Mastercard scheme fee structure.
Note that no information has currently been received to indicate similar changes for Visa.
As for Bambora’s customers, IC++ merchants will see the update as part of their reported scheme fees automatically. Merchants on a Blended price model will be informed in case impacts require adjusted pricing.