Under Tory Brexit, UK businesses and consumers will miss out on new EU proposals to slash transaction fees and cross-border charges

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The European Parliament this week voted through new laws that will cut costs for businesses that trade with and consumers who purchase goods and services from all other EU countries - savings British companies and holidaymakers will miss out on under a Tory Brexit, Labour MEPs warned.

The proposals to reduce charges for cross-border transaction fees will ensure the same charges for euro-transactions as for transactions in national currencies – presently, for example, a cross-border payment in euros from a non-eurozone country will incur a fee of up to €20, compared to intra-eurozone cross-border payments which in many cases cost nothing.

The new rules will also ensure greater transparency on cross-currency card payments, so consumers purchasing goods or services while abroad using their domestic credit or debit card will immediately know exactly how much they are paying if they pay in their home currency or the local currency.

These new proposals will bring down costs for businesses in non-eurozone countries like the UK that buy and source raw materials and other goods from within the eurozone - yet if the UK leaves the EU and single market, British companies will not benefit from reductions in cross-border charges, and consumers will not benefit from reduced prices at home.

The new laws are designed to create a level playing field for British and all other European businesses that don’t have the euro as their currency. Businesses from outside the eurozone currently pay £1.3 billion in rip-off cross-border charges for euro payments, with charges of up to €20 a time.

And for holidaymakers, the new proposals on dynamic currency conversion will ensure people travelling abroad will know at once exactly how much they are paying in their own currency when using a credit card in other EU countries, and will not return home to unexpected bills - yet outside the single market and EU under a Tory Brexit, British holidaymakers will not benefit from these new measures.

Friday, February 15, 2019

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