How the Payment Systems Regulator is addressing Mastercard and Visa’s 25% fee increase
Highlights:
- The Payment Systems Regulator (PSR) is taking action against Mastercard and Visa after a 25% increase in card scheme and processing fees since 2017.
- The fee hikes have raised costs for UK businesses, impacting their ability to invest and grow, especially small merchants.
- PSR plans to introduce remedies to improve transparency, ensure fair pricing, and foster competition in the payment systems market.
Story Summary: The UK’s Payment Systems Regulator (PSR) has announced measures to address the significant 25% increase in card scheme and processing fees imposed by Mastercard and Visa since 2017. These fee hikes have cost UK businesses millions annually, hindering their growth and investment potential. The PSR’s investigation revealed a lack of competition in the market and insufficient transparency in fee structures, which has burdened acquirers and merchants with complex and unclear information.
To tackle these issues, the PSR is consulting on potential remedies aimed at improving transparency, ensuring fair pricing, and fostering a competitive environment in the payment systems market. These actions are expected to benefit businesses and consumers alike by creating a more equitable and efficient payment ecosystem.
