The Payment Systems Regulator takes action to address lack of competition and transparency in card scheme fees
Highlights:
- The Payment Systems Regulator (PSR) identifies a 25% increase in Mastercard and Visa’s core scheme fees since 2017.
- The PSR highlights a lack of competition and transparency, impacting UK businesses’ ability to negotiate better deals.
- Proposed remedies include improved transparency and consultation on fee changes to foster a fairer market.
Story Summary: The UK’s Payment Systems Regulator (PSR) has announced plans to address the steep 25% hike in core scheme fees imposed by Mastercard and Visa since 2017. The regulator’s market review revealed that these fee increases have cost UK businesses millions annually, hindering their growth and investment potential. Additionally, the PSR found that the lack of clear and detailed information on fees has made it difficult for acquirers and merchants to negotiate better terms.
To tackle these issues, the PSR is proposing remedies to enhance transparency, including mandatory consultations on fee changes and detailed financial disclosures. This move aims to create a more competitive and equitable card payment market in the UK.
