‘No return to credit card surcharges after Brexit’

MASTERCARD vice-chairman Anne Cairns said a ban on credit card surcharging has boosted transactions and dismissed fears over a return of the £166million-a-year fees after Brexit.

She said the EU ban on surcharging had been “fantastic” for consumers and the credit card industry.

Ms Cairns said Mastercard’s transaction numbers had increased since the ban came into force across Europe in January, which prevents firms from charging consumers for using credit or debit cards or PayPal.

“The elimination of (surcharges) has been fantastic for consumers and we’ve seen more transactions,” she said. “It’s been hugely positive.

“When I go to other countries in the world and find out I’m being surcharged, I go nuts.”

There had been fears that a no-deal Brexit scenario could prove the ban to be short-lived in the UK.

Recent technical papers released by the Government revealed the ban would no longer cover cross-border payments between the UK and Europe in the event of a cliff-edge withdrawal.

The Treasury said cross-border card charges cost Britons £166million in 2015. Ms Cairns brushed aside fears the ban would not be enforced, saying she “can’t ever see it coming back in”.

“Consumers would make their preference heard,” she said.

Ms Cairns – who was promoted from international president to vice-chairman of the global payments giant in June – said the industry had also been grappling with a raft of IT meltdowns this year. As well as the IT failure that blocked millions of Visa payments in June, there have also been technology meltdowns at high street lender TSB, as well as a number of cyber hacks that have compromised millions of consumer card details.

Ms Cairns said Mastercard spent a “huge amount” each year on prevention and detection of cyber crime, while the group also built these systems to sell to banks. She blamed ageing technology and botched migrations for the recent spate of banking meltdowns, but insisted the industry was getting better.

But she warned: “Unless the back ends are invested in and keep pace, you’ll see a repeat of these issues.”

She is a fan of innovations such as Apple Pay, allowing Mastercard customers to make contactless payments using an iPhone or Apple Watch, and believes the UK could one day become almost entirely cash-free.

Herself “almost 100 per cent electronic”, Ms Cairns said Britain is already 50 per cent cashless.

“I would say it (cash) could almost go completely, but it will be a generational thing,” she said.

“I think people want a safe and secure way to transact,” she added.

Ms Cairns has also been championing gender equality in the industry.

She has been working on an initiative called Leave a Legacy, helping to encourage more women into management, and said Mastercard was looking to “build a pipeline” of women coming up through the ranks.

“We’re not saying you have to have a woman in the job – we’re saying let’s have the best candidates,” she said.

‘It’s been fantastic and we’ve seen more transactions’