MR22/2.7 Market review of UK-EEA consumer cross-border interchange fees: Final report

We have published the Final Report on our Market Review into Cross Border Interchange Fees. We have also published an associated consultation paper which seeks views on potential remedies to the issues identified in the Final Report.  

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 and the EEA, so it is crucial that the market works well.   

Every time people use Mastercard or Visa debit or credit cards issued in the EEA for online retail transactions with UK businesses, UK businesses pay cross-border interchange fees. After Mastercard and Visa significantly raised some of these fees in 2021 and 2022, the PSR has been examining the level of these fees to understand whether they, or other factors, indicate the market is not working well.  

In 2023, the PSR set out its provisional concerns that Mastercard and Visa have likely raised these fees to an unduly high level, at the expense of UK businesses. In 2022 alone, the PSR estimates that UK businesses paid an extra £150-200 million due to the fee increases. 

Our Final Report confirms these findings and that a lack of competition in the market leads to costly price increases with an unclear rationale.  

Who should read this document?  

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? 

We have also published a consultation paper that sets out a proposed two stage price cap remedy that will address the issues that we have found in this Final Report.  

If we decide a phased approach to a cap is appropriate, we will publish a final remedies notice on the proposed initial price cap next year and a proposed methodology for developing a lasting cap at a later date.