We have published a consultation paper on proposed remedies to the issues that we found in the final report of our market review into scheme and processing fees. You have until 28 May 2025 to respond.
Why are we publishing this document, and what does it contain?
Cards are the most popular way for consumers to pay for goods and services in the UK, so it is crucial that the market works well.
Every time people use a Mastercard or Visa debit or credit card for transactions with UK businesses, UK businesses pay scheme and processing fees, some of which are mandatory or core and some of which are optional.
Following increases in these fees, the PSR has been examining the level of these fees to understand whether they, or other factors, indicate the market is not working well. The final report of our market review found that Mastercard and Visa increased their core scheme and processing fees to acquirers by at least 25% since 2017, costing businesses at least £170 million extra per year, and that the lack of easy-to-understand fee information led to costs for acquirers and merchants.
The consultation paper seeks views on a number of proposed remedies designed address the problems that were identified in the final report. In particular:
- Better information for merchants and acquirers by requiring schemes to provide more information on fees so merchants can better understand the fees they are charged and ultimately reduce costs
- Regulatory financial reporting to allow the PSR to effectively monitor and understand the schemes’ financial performance on fees charged in the UK
- Better pricing governance by requiring schemes to improve their processes around pricing decisions’ process and record keeping to enable the PSR to better understand the appropriateness of these fees.
- Publication by schemes of more information to improve accountability and transparency.
Who should read this document?
Anyone with an interest in card payments in the UK - particularly issuers, acquirers, card scheme operators, businesses and cardholders. They would all be welcome to give their views on our proposed remedies by responding to the consultation.
What happens next?
The window for giving feedback is open until 28 May 2025.
After the consultation has closed, we will analyse the responses and if we then decide to proceed with one or all the remedies, there will then be a final consultation – which will include a cost benefit analysis and a draft direction – on the specific remedy package that we are proposing to introduce.
