Subheading
The Payment Systems Regulator (PSR) aims to introduce a price cap on cross-border card fees charged by Visa and Mastercard, safeguarding UK businesses from excessive costs.
Highlights
- Proposed Cap: The PSR plans to introduce a price cap on cross-border card fees charged by Visa and Mastercard.
- Business Impact: The cap aims to protect UK businesses from the high costs of cross-border interchange fees.
- Regulatory Action: The PSR’s proposal follows significant fee increases by Visa and Mastercard post-Brexit.
The Payment Systems Regulator (PSR) is moving forward with plans to introduce a price cap on the cross-border card fees charged by Visa and Mastercard. This regulatory action is in response to the significant fee increases implemented by the card schemes post-Brexit, which have raised cross-border interchange fees fivefold, costing UK businesses an additional £150-200 million per year.
The proposed cap aims to protect UK businesses from these excessive costs and ensure a fairer competitive environment. The PSR’s consultation on the price cap will explore various options, including an interim cap to revert fees to pre-Brexit levels, while further analysis is conducted to determine a long-term solution.
