Ensuring Cross-Border Card Transactions are Open and Accountable

In an effort to provide greater transparency to consumers, the European Union has implemented new regulations that require card issuers, payment processors, and online merchants to disclose the total cost of transactions carried out in a SEPA currency other than EUR.

As of 19 April 2021, these entities are required to send electronic reminders to customers regarding the FX charges in the cards' terms and conditions. This new requirement is part of a broader initiative aimed at increasing transparency in the cost of transactions carried out in a SEPA currency other than EUR, regardless of the method - POS or ATM.

The regulations also require the disclosure of the Mastercard and Visa conversion rates that apply to foreign currency transactions, as well as the mark-up of these rates over the ECB rate. This is intended to further enhance transparency for consumers regarding FX charges.

Compliance with these new regulations has increased, with some EU banks now posting the terms and conditions of their debit and credit cards, Mastercard and Visa conversion rates, and the mark-up of such rates over the ECB rate on their websites.

It is recommended that consumers seeking more information about cross-border pricing data, Visa and Mastercard rates, and optimizing cross-border card pricing reach out to their respective banks or payment providers. This recommendation is made by Valentina Vitali, who has shared her insights on this matter on her LinkedIn profile.

It is important to note that the comparison between FX and Dynamic Currency Conversion (DCC) costs might differ significantly day-to-day due to the fluctuation in Visa and Mastercard pricing for certain SEPA currency pairs. Therefore, it is advisable to stay informed about these changes to make informed decisions when using cards for transactions in a SEPA currency other than EUR.

These new regulations apply only to transactions within the European Union. As of now, the search results do not provide specific names of banks or payment providers in 2021 that have sent electronic reminders about FX fees in their card terms as announced in the mentioned appointment. However, with the approaching deadline for the new requirement of electronic reminders, it is expected that more entities will follow suit in the coming days.

In conclusion, the new EU regulations are a significant step towards providing greater transparency to consumers regarding the cost of transactions carried out in a SEPA currency other than EUR. By staying informed and seeking out the necessary information, consumers can make more informed decisions and avoid unexpected charges when using their cards abroad.