Market review of card scheme and processing fees final report
We have published the final report of our market review into scheme and processing fees.
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.
We found that:
- Mastercard and Visa increased their core scheme and processing fees to acquirers by at least 25% since 2017, costing businesses at least £170million extra per year. This increased cost of doing business in the UK impacts on UK businesses’ ability to invest and grow, and could lead to direct economic constraints, particularly for small merchants.
- In addition, a lack of easy-to-understand fee information has led to costs for acquirers and merchants, including small retailers.
Who should read this document?
Anyone with an interest in card payments in the UK - particularly issuers, acquirers, card scheme operators, businesses and cardholders.
What happens next?
We will shortly be publishing the annexes to the final report and will also be publishing a consultation paper that will seek views on a number of remedies that will address the issues that are identified in the final report.