The cost of card payments to the EU would likely increase under a ‘no-deal’ Brexit, the UK government has warned. This means that the hospitality sector could be hit with additional costs taking card payments from tourists. This could potentially lead to much higher costs for UK merchants taking payments from cardholders in EU. This could mean:
- Food importers could face additional costs
- Hotels are hit with additional costs by taking card payments from tourists
- Pubs and restaurants local to universities may be impacted with additional costs from international students
The likelihood of a ‘no deal’ Brexit is increasing
The likelihood of a ‘no deal’ Brexit increases as March 2019 fast approaches. The government released ‘no deal’ planning papers and 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 method.)”
The government didn’t specify how much card payment costs are expected to rise in the case of ‘no deal’. The likely price rises could mean that the cost of taking payments from EU cards could increase. This is bad news for the hotel and hospitality sector as taking payments from European cards could be hit with additional costs, lowering their profit margins.
Secure merchant costs before March 2019
It’s not yet clear what impact a ‘no deal’ Brexit is going to have on card payments when Britain leaves the EU. At Utility Swap we recommend that it’s worth appraising your merchant costs before March 2019.
This way, you can make sure that your business is in the best financial position regardless of what happens with Brexit. To help you with your merchant payment cost, we offer a no-obligation assessment. Get in touch to see how we can help you post-Brexit [email protected]