Credit card users could be smacked with a new ‘Brexit tax’ as the cost of card payments between the UK and EU in a ‘no-Brexit deal’ are likely to increase.
In a document released today entitled Banking, insurance and other financial services if there’s no Brexit deal, the government said 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 paper continued: “For UK-based customers who access banking, insurance, investment funds and other financial services with EEA firms currently passporting into the UK, the temporary permissions regimes will enable these firms to continue to provide those services to UK customers for up to three years after exit.
“This will allow time for these firms to apply for authorisation to continue operating in the UK. If they receive authorisation covering the full scope of the services that they currently provide, then they will be able to continue to provide services as before.”
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