Credit Card companies exploit their payments market dominance.
More from the FT on the move by Mastercard to hike 'interchange fees' on UK card transactions with EUR merchants by over 400% from October 2021.
Visa has not yet said whether or not it will follow suit.
The main gainers will be the banks, rather than the credit cards companies themselves - but it seems likely that UK consumers will be on the losing end of this one - again!
"Admittedly, higher interchange fees do not mean automatically higher costs for British consumers — and do not directly benefit the credit card companies. The fee is actually levied on the European retailer’s bank, which pays it to the bank that issued the customer’s card. But it would be logical to expect the charges to be passed on to customers, reversing benefits accrued in recent years. A June 2020 report from the European Commission examining the advantages of its interchange fee caps found that retailers — and, thus, potentially their customers — had saved €1.2bn a year".
This feels like an area that should be ripe for investigation by the Financial Conduct Authority, now that the UK is no longer covered by EU rules that have limited such fees in the past.