Mastercard to raise fees by at least 400% for EU firms selling to UK customers

Change from October could lead to higher prices for those paying with UK-issued cards

Mastercard is to increase the fees EU firms face to take payments from online shoppers from the UK by at least 400%, in a move that could mean higher prices for consumers.

When a credit or debit card is used, a percentage of the purchase price is paid by the retailer to the bank that issued it as an interchange fee, which is set by a payments firm.

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‘It’s crazy, but I started my own bank’: the story behind Starling

Fed up with modern finance and Britain’s broken banking system, Anne Boden decided there was only one thing to do: set up a bank that ran in the way she wanted it to

The first time I met Anne Boden was last December at a glitzy awards ceremony where I knew no one, felt out of place and was skulking in the loos. In she bustled – she’s smaller than me (I’m 5ft 1in), older than me (she’s 60), a little eccentric and perhaps the friendliest person in the place. She didn’t stop talking. She ushered me out, remained by my side until the ceremony started (think Disney’s Fairy Godmother) and, along the way, mentioned that she was the founder and CEO of Starling Bank, the event’s main sponsor.

I couldn’t have been more surprised – or picture a less likely “banking mogul”. When she explained that Starling was an app-based bank, I rewarded her with the worst response possible. “You mean like Monzo?” (My daughter had signed up to Monzo, the trendy “no branches” bank, to acquire its distinctive coral-coloured card, which now gathers dust on her bookshelf.) Boden was gracious but flustered. I ascertained that Monzo had been founded by her former business partner Tom Blomfield. He was considerably younger, more hip, more Hoxton – and he’d left her, taking the other directors with him.

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Mastercard ruling: almost every UK adult could receive payout

Lawsuit could benefit 46 million people even if they have never owned the credit card

Almost every adult in the UK could receive a payout of up to £300 from Mastercard after a court ruling paved the way for a £14bn class action lawsuit.

The legal action taken by former financial ombudsman Walter Merricks claims that 46 million UK consumers paid higher prices in shops over a 16-year period because of allegedly excessive transaction fees charged by Mastercard.

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