We have published a consultation paper setting out potential remedies to the issues we identified in the Final Report of our Market Review into Cross Border Interchange Fees.
Why are we publishing this document and what does it contain?
The Final Report on our Market Review found a number of harms associated with the lack of competition in the cross border interchange fee market. As a result of these harms, merchants are paying £150-£200million a year more in fees than they would if the market worked properly.
To address these issues, our consultation paper sets out a potential price cap remedy. This would see – subject to the outcome of the consultation – an initial interim cap put in place for a limited time while further analysis is carried out to establish an appropriate methodology and level for a longer lasting cap.
Who should read this document?
We are keen to receive feedback on the document from anyone with an interest in online retail payments between the UK and EEA – particularly issuers, acquirers, card scheme operators, businesses, and cardholders.
What happens next?
The window for giving feedback is open until 7 February 2025.
If we decide a phased approach to a cap is appropriate, we will publish a final remedies notice on the proposed initial price cap. We will also consult on a proposed methodology for developing a lasting cap at a later date.
