They are saying the plan would place EU firms at “distinct drawback” and danger “undermining” the overhaul of ties.
The letter, from seven MEPs representing totally different nations and events inside the EU’s legislative physique, was despatched on Sept. 20 and seen by POLITICO.
Britain’s Cost Programs Regulator (PSR) desires to reapply a pre-Brexit cap on interchange charges — that are set by Visa and Mastercard on behalf of banks — for on-line purchases made by European cardholders at U.Ok. retailers.
It believes U.Ok. companies are overpaying on charges for cross-border transactions.
However the EU’s funds trade has already branded the U.Ok. plans “doubtlessly discriminatory” and warned they’ll “negatively influence EU customers” by forcing European card suppliers to soak up extra price than their U.Ok. counterparts.
That’s echoed within the newest letter to Siddiq and the PSR. “We strongly imagine that each the EU and the U.Ok. are dedicated to strengthening our post-Brexit relationships,” the MEPs write. “Nevertheless, unilateral actions like this danger undermining these commitments.”
They add: “We might word that if the EU determined to retaliate similarly, U.Ok. cost firms and UK customers would endure the identical unfavorable penalties as these dealing with their EU counterparts.”
The businesses and MEPs argue that prices incurred by EU issuers — monetary corporations like banks or cost firms — for enabling such transactions usually exceed that cap, so they might find yourself dropping cash.