In March 2019, the PSR adopted the EU Exit instrument onshoring the Regulatory Technical Standards (RTS) Regulation supplementing Article 7(1)(a) of the Interchange Fee Regulation (IFR). This came into effect on 31 December 2020.
Summary
The changes address deficiencies which arose from UK withdrawal from the EU.
The EU Exit Instrument amends the RTS regulation supplementing Article 7(1)(a) of the IFR to ensure it:
- continues to function effectively now that the UK has withdrawn from the EU
- is consistent with the amendments the Treasury made to the IFR under the European Union (Withdrawal) Act 2018 (EUWA)
Article 7(1)(a) of the IFR requires payment card schemes and processing entities to be independent in terms of accounting, organisation and decision-making processes. The RTS Regulation sets out the specific requirements applicable to payment card schemes and processing entities.
Background
At the end of the implementation period (31.12.2020), the IFR was converted into UK law and onshored.
The Treasury has delegated EUWA powers to us to onshore the RTS Regulation and maintain it in the future. These powers are linked to our role as the main authority for monitoring and enforcing the IFR in the UK.
Who should read this document?
We expect this update to be helpful to various parties, interested in how the RTS Regulation now applies in the UK, including:
- card schemes subject to Article 7 of the IFR
- parties contracting with card schemes and/or processing entities (for example, issuers and acquirers)
- third-party card payment processors
Reference: EU Exit instrument, made in 2019 with amendments to the RTS Regulation can be found here.