Card payments to the EU would cost more under a no deal Brexit — and it means your Ubers could get more expensive – Finance

  • The cost of transactions with cards between the UK and the EU "is likely to increase" if Britain leaves the EU without any transactions, warned the government.
  • Such an increase could cost customers of firms such as Uber, who processes trips to the UK through its European headquarters in the Netherlands.
  • The chances of a Brexit deal appear to be growing, many believe that this is more likely than a deal.

LONDON. The cost of card payments in the EU is likely to increase without agreement with Brexit, the UK government has warned that means that services such as Uber can become more expensive.

Brexit's secretary Dominique Raab and his department published on Thursday a series of "unrelated" plans covering everything from London to customs arrangements.

In the documents, the government warns that the cost of transactions with cards between the UK and the EU can increase if both sides can not conclude a deal by March next year. Here is a key excerpt from the government document:

"The cost of card payments between the UK and the EU is likely to increase, and these cross-border payments will no longer be covered by an interdiction ban (which does not allow businesses to charge customers for using a certain form of payment)."

The government did not indicate how many of them expect a rise in the cost of payment on the card after such a result.

Probable changes may mean that the cost of using certain services in the UK may increase. For example, the use of the Uber ride application may become more expensive.

If you look at any receipt for a trip to Uber in the UK, you will see that Uber processes payment for the trip through its Dutch subsidiary Uber BV, located in Amsterdam. Given that Amsterdam is in the European Union, he may suffer from any increase in the "no deals" scenario.

Sky News reported in March that Uber applied for a license for electronic money in the Netherlands because it expects to centralize its payment processing operations there and to diversify new products and services.

Uber declined to comment by contacting Business Insider. Adien, the parent company of Amsterdam, which processes payments for Uber, also declined to comment when asked about the specifics of Uber's payment routes.

Even if the costs are growing for Uber, it should be said that the company can not transfer it to consumers and simply absorbs the costs themselves.

Antony Walker, deputy general manager of TechUK for Commerce, said by e-mail: "Notifications also reveal some other problems facing the technology sector of the UK in the absence of a deal. The rules for covering payment services will cease to apply, which will affect many new FinTech companies and the fee for using credit cards is likely to increase, and payments in different currencies may slow down. "

In addition to the possible impact on enterprises such as Uber, the increase in card fees could increase costs for the British by using their cards abroad. Many banks already charge fees for transactions in foreign currency and for using external ATMs.

Removing the ban on surcharges could also mean that EU companies can charge different types of fees to UK consumers for the use of different types of cards. Until January of this year, Companies from the EU could charge more customers for using certain cards, often adding fees for using credit cards instead of debit cards, as well as less widely used cards such as American Express. If Britain left without a deal, these rules will no longer apply to EU firms selling services to the British.

On Thursday morning, the government promulgated "no-deposit" notices of Breshit as part of its planning of what appears to be the growing likelihood of a UK exit from the EU without any deal.

While the secretary of Brexit Dominique Raab said he expects the deal to be secured, The British public now believes that no deal is the most likely outcome and Commerce Minister Liam Fox recently put his probability at 60%.

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