Legal battles intensify as Revolut and Visa oppose the Payment Systems Regulator’s move to cap interchange fees, citing overreach and economic concerns
Highlights:
- Revolut and Visa have filed legal challenges against the UK Payment Systems Regulator (PSR) over its decision to cap interchange fees on cross-border online payments.
- The PSR claims the fee cap is necessary to curb excessive charges, which have reportedly increased fivefold post-Brexit, costing businesses £150-200 million annually.
- Revolut and Visa argue that the PSR has overstepped its statutory powers, with Visa emphasizing the need for clarity and fairness in the regulatory process.
Summary: Revolut and Visa are taking legal action against the UK Payment Systems Regulator (PSR) following its decision to impose a cap on interchange fees for cross-border online payments. The PSR introduced this measure to address significant fee hikes by Visa and Mastercard, which have reportedly burdened UK businesses with additional costs of £150-200 million annually.
Revolut contends that the PSR has exceeded its legal authority, while Visa stresses the importance of a fair and transparent regulatory process to ensure industry growth and investment. The PSR, however, remains firm in its stance, defending the fee cap as a necessary step to protect businesses and consumers. This legal dispute highlights the ongoing tension between regulatory oversight and industry autonomy in the financial sector.
