The Payment Systems Regulator (PSR) published last Friday the final report of its market review into cross-border interchange fees. The report finds that the high level of fees is harming businesses, so the PSR also published a consultation on a proposed price cap remedy that seeks to protect UK businesses from overpaying these fees.
Key findings from the Final Report :
📈 Significant Hikes: Visa & Mastercard raised UK-EEA interchange fees post-Brexit, costing UK merchants £150-200M/year.
⚖️ No Justification: Increases lack competitive or service-based reasons.
❗ Market Issues: The market isn’t working effectively for merchants or consumers.
🛠️ Proposed Solution: The PSR proposed a two-stage price cap remedy to ensure fairness and protect service users.
🔗 The full Report is here.
