The 3 Biggest Visa & Mastercard Changes In October 2021

As we approach the 15^th October 2021, there will be several changes implemented by Visa and Mastercard to improve their service for customers. It’s important that you are aware of these changes in case they affect you and impact how you use the service. Below are our picks for the three biggest changes that are coming up later this month.

Revised Interchange Fees

In January 2021, the United Kingdom ceased being part of the European Economic Area (EEA), however it won’t be until later this month that the true impact of this change is felt. It’s already clear that both Visa and Mastercard will be revising their interchange fees for transactions between the UK and EEA. These changes will come until effect on 15^th October 2021.

The most significant impact will be on consumer card-not-present transactions from UK-owned cards to EEA merchants. These transactions are currently charged at 0.2% for debit cards and 0.3% for credit cards. However, with the revised interchange fees, this is about to change. The changes mean that charges will now conform with the interregional capped consumer rates of 1.15% for debit cards and 1.5% for credit cards.

Amended Standards For Adult Merchants

On the 14^th April 2021, Mastercard issued an update pertaining to merchants who offer adult content on their platforms focusing on controls, consent, and protections. This is to ensure that there are procedures in place to mitigate any risk of potentially illegal content or content that could be damaging for the Mastercard brand. Similar to the planned revised interchange fees, the changes come into force on 15^th October 2021.

The result will be that if you wish to use Mastercard as a payment service, acquirers will need to be able to verify that merchants who provide adult content have adequate controls in place to prohibit or take down their content should illegal activity be found to be taking place on their websites.

£100 Contactless Payments

Another new rule being implemented on 15^th October 2021 is the use of contactless payments up to the value of £100 in the UK. At the beginning of the pandemic, the limit on contactless payments was increased from £30 to £45 in an effort to limit the amount of contact between a customer and the cashier. Some retailers even stopped using cash altogether, while others encouraged their customers to use their cards rather than cash payments.

Although the restrictions around the pandemic have loosened in the UK in recent months, there’s still a want to increase the contactless payments threshold to £100, although it may take some time to be available at all retailers. Contactless payments are proving to be extremely popular with consumers, so the move makes sense according to UK Finance, a trade association of UK banking.

Make sure you bookmark the Axcess Merchant Payments blog for more insights into the ever-changing world of payments. Our recently revealed review of payment trends in 2021 gave a snapshot of the technologies changing the way the world does business and how it will change the way you see payments in the near future.

If you are concerned about how these changes might affect your business, get in touch and speak with one of our payment experts today – https://calendly.com/axcess.