Impact due to Brexit

Hi Guys, how will Brexit impact Curve card service in the EU. I already got letters from Amex and also Barclay Card that they are moving their parent head quartes to a new place inside of Europe out of UK. How about Curve?

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They’ll be back, mark my words!

What I can share now is that we are prepared for all eventualities of the Brexit negotiation :slight_smile:

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Glad to hear it, just wish the UK was similarly prepared!!

That’s strange, working in the Barclaycard HQ I didn’t realise our entire building was moving :joy:. It’s just some specific jobs for EU trading.

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Okay, since all signs point toward a no-deal Brexit now, i hope you guys really are prepared. I’ll better go get my real cards as a backup option, at least for the first few days.

Here’s hoping they see sense and cancel this whole farce!

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@Curve_Marie
any news on this?

I just discovered something, that is BIG
I booked tickets on the German version of https://www.aeroflot.com/de-de
They were billed and paid in EUR.
My bank however (couldnt use Curve cause the replacement card was on its way), charged me an 1.85% fee, even thou the transaction was in EUR.

After researching, I found out that my bank does not charge any fees for EUR transactions within the EEA, however, for intl. transactions in EUR where the point of sale is outside of the EEA they charge the 1.85% fee, no matter in which currency it is in!

So I read through all the t&c of my cards and found similar paragraphs. By EU law they are not allowed to charge a cross border fee for EUR transactions for either EEA or EU merchants (depending on the bank) but are allowed to charge a fee for “out-of-EU/EEA merchants”

Meaning, If Curve stays within the UK (even if they have some sort of Wirecard EU license) and a brexit happens, even if Curve continues to charge my underlying cards in EUR, I’d still have to pay a 1.75% - 2% fee (depending on which card), I’d still have to pay the fee which would render Curve useless.

I highly recommend to everyone to read through the fineprints of your underlying cards. Its not under foreign currency fees, since the charge is still in EUR.

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I suppose Curve could operate both in the UK and in an EU country, if they want to (and obtain the required license/permissions).
They could then choose from where to charge the underlying card based either on the users home country, or even based on the issuing country of the underlying card.
Perhaps it would be necessary to have separate card number ranges for UK and EU users, to get the transactions processed by the “right” Curve entity, but I’m just speculating.
I have no idea if there is any plan for something like this though.
If my cards would start to charge me 2% for Curve transactions, it would indeed be useless.

Keep in mind that this has nothing to do with which card number Curve uses!
Its not how your Curve card gets charged, but how Curve charges the underlying card.
Curve issues cards via Wirecard solutions (currently UK), but they can just use any of the Wirecard sister companies after Brexit to issue cards.

The problem is how Curve acts as a merchant.
They use GPS as payment processor for that, which is located in the UK. So if they keep on using GPS (most likely) and GPS has no other location than in the UK, every Curve transaction via GPS will be charged a heavy fee then for my underlying cards.

Everyone always only thinks about Curve being able to issue cards by Wirecard but forget about Curve as a merchant.

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We published an article on what would happen with Brexit.

GPS is not the acquirer, Wirecard Bank is :slight_smile:

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Are you telling us your Bank rips you off everytime you rely on your Bank issued cards when you are abroad? :thinking:
Maybe you’ll be better off with a new Issuer for your everyday cards. May I suggest you to open a Revolut account (they’ll probably move EU accounts to their EU Bank in case of “no deal”) or a Monese account (they announced they’ll move EU accounts to a EU Bank by the end of September)?
You will be able to top up these accounts with no fees whatsoever (either directly with your Bank issued card or with a simple bank transfer).

Or maybe the payment method of your choice was a bank transfer? In this case your Bank simply CAN’T apply any more fees to a specific SEPA Zone country, thats called IBAN discrimination and it’s regulated by EU laws. And yes, UK it’s still regulated by SEPA rules, for now. :thinking:

Or am I missing something? :thinking:

Ok, but will this mean that (in order to solve the problem described by @Lucas), if Brexit happens, EUR transactions (or transactions in non-EUR currency that are converted to EUR by Curve) will not show as paid in London (on the underlying card overview) anymore, but instead as paid in Germany (or any other EU country)?

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The Brexit article with “All You Need To Know” doesn’t go into much detail, so apparently we don’t need to know much :wink: Especially not about the acquiring business, but we can still ask, and speculate…

One aspect to consider is the cap on the interchange fee when an EEA merchant charges an EEA issued card. In a hard brexit, this cap may no longer apply to a UK merchant. Curve therefore faces the risk of having to pay higher fees if keeps charging EEA issued underlying cards from the UK. So it should be in Curve’s own interest to start doing the acquiring of EEA cards from an EU country.

Yes, it does :slight_smile:


Brexit does come with a ton of potentially interesting “what if’s” @Micke :sweat_smile:


You brought up such a great point @Lucas. Keep the questions and scenarios coming. I’ll have a chat with Dave, our Head of Finance, about this thread and we’ll answer you as well as Brexit questions can be answered at this point :smile:

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I’m sure banks will try to gain profit from brexit, hope Curve and others can adopt to avoid it.

So I had a chat with some of my banks and they confirmed:
IF Brexit happens and IF Curve (or any other merchant) is registered in the UK / the plattform they process the charge from / the point of sale / … and even if they still charge the underlying card in EUR, some of my banks will charge a “out of EU / EEA” fee. (1.85% - 2% depending on the bank)

I always thought a foreign transaction fee only applies when the charged currency is not in EUR, but as described in my previous post I bought something from aeroflot Germany online, billed and charged in EUR but had to pay the “out of EU / EEA” fee.

@HIKA I know of banks that do not charge any fees, I of course also have cards with 0% fees for intl. transactions, but I still wanted to raise this topic since many Curve do not have only 0% fee underlying card accounts and Curves aim is to offer the low fees to these customers with Curve.
If suddenly the majority of German Curve users have to pay a fee for Curve charging their underlying cards this would be catastrophic and would mean the end to Curve to German users.

And its good to discuss this before it actually happens so Curve can take actions :slight_smile:

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You are absolutely right, it’s something that could hinder one of the major benefits of the Curve card and it has the potential to affect a large number of the customer base.
Your German Bank card would prove pretty costly while it’s being used abroad and that’s something Curve has the capability to address!
I don’t think the “majority” of the customer base could be really damaged by it but I understand what you mean! :slightly_smiling_face:

We should get a discount on every popcorn purchase anywhere in the world. Brexit is more entertaining, than any Monty Python sketch ever.

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This is annoying it happens with most of my Australian cards (i.e linking Aus cards with Curve and spending in Australian dollars results in a foreign transaction fee as the transaction is processed in London). The only way around this that I have found is to link an Australian card with no foreign transaction fees - although this seriously limits the Aus cards I can use with Curve.