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EU card payments costs to increase in no deal Brexit, Uber could be impacted



credit card
Card payments could get
more expensive.


  • The cost of card transactions between the UK and EU
    would “likely increase” in the event that Britain leaves the EU
    with no deal, the government has warned.
  • Such increases could cost customers of firms like Uber,
    which processes UK journeys through its European headquarters
    in the Netherlands.
  • The chances of a no deal Brexit appear to be rising,
    with many now believing that it is more likely than a deal
    being struck.

LONDON — The cost of card payments to the EU would likely
increase under a no deal Brexit, the UK government has warned,
meaning services such as Uber could get more expensive.

Brexit Secretary Dominic Raab and his department released a
series of “no deal” planning papers on Thursday, covering
everything from the City of London to customs arrangements.

Within the documents, the government warns that the cost of card
transactions between the UK and the EU could rise if the two
sides fail to reach a deal by March next year. Here’s the key
extract from the government’s paper:

“The cost of card payments between the UK and EU will likely
increase, and these cross-border payments will no longer be
covered by the surcharging ban (which prevents businesses from
being able to charge consumers for using a specific payment

The government did not specify how much it expects card payment
costs to rise after such an outcome.

The likely changes could mean that the cost of using some
services in the UK could increase. Using the ride-hailing app
Uber, for instance, could become more expensive.

If you look at any receipt for an Uber journey in the UK, you’ll
see Uber processes the payment for your ride through its Dutch
subsidiary, Uber BV, based in Amsterdam. Given that
Amsterdam is in the European Union, it could be hit by any rise
under a “no deal” scenario.

Sky News reported in March that
Uber had applied for an e-money license in the Netherlands
it looks to centralize its payment processing operations there
and diversify into new products and services.

Uber declined to comment when contacted by Business
Insider. Adyen, the Amsterdam-headquartered company which
process payments for Uber, also declined to comment when asked
about the specifics of Uber’s payment routes.

Even if the costs do rise for Uber, it should be said that the
company may not pass that on to consumers and simply absorb the
costs itself.

As well as possibly impacting businesses like Uber, a rise in
card fees could increase costs for Brits using their cards
abroad. Many banks already charge fees for doing transactions in
foreign currencies, and for using foreign ATMs.

The removal of a ban on surcharging could also mean that EU
companies are able to charge UK consumers different fees for
using different types of cards.
Until January this year,
EU companies were able to charge
customers more money 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 were to
leave without a deal, those rules would no longer apply to EU
firms selling services to Brits.

The government released its “no deal” Brexit notices on Thursday
morning as part of its planning for what appears to be the rising
likelihood of Britain leaving the EU without any sort of deal.

While Brexit Secretary
Dominic Raab said he expects a deal to be secured
the British public now believes no deal is the most likely
 and Trade Secretary Liam Fox recently put its
likelihood at 60%.

Our Brexit Insider Facebook group is the best place for up-to-date news and analysis about Britain’s departure from the EU, direct from Business Insider’s political reporters. Join here.

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