UK cards after Brexit: why they cost Maltese businesses more

The UK is one of Malta's largest tourist markets. Before Brexit, a British visitor's card cost you roughly the same as a card from Italy or Germany. Since the UK left the EU, that is no longer the case.

What changed

For card schemes, the UK is now a separate region from the EU. A British card used in Malta is an inter-regional payment rather than an intra-EU one. These payments carry:

• higher cross-border and scheme fees
• in some cases higher interchange, especially for business cards and online payments

Why many businesses never notice

If you pay a single blended rate for all cards, the extra cost of UK cards is averaged into your rate. You pay it, but you never see it. Your provider may also have raised your blended rate to cover the mix of cards.

How to see it

1. Look at your statement for a split by card origin or type.
2. Check how much of your card turnover comes from UK and other non-EU cards.
3. Compare with an interchange++ quote, where each card is charged at its actual cost plus a fixed margin.

Example

A bar in St Julian's takes €30,000 a month by card, a third of it from UK cards. On a blended rate of 1.9% it pays €570. With interchange++, the EU cards become cheaper and only the UK cards carry their higher cost: the total could fall to around €400, about €2,000 a year less.

What you can do

• Find out what share of your turnover comes from UK cards.
• Ask for pricing that separates EU and non-EU cards.
• Compare on your own statement, from a busy month.