The regulator is now seeking feedback on a potential interim cap on fees until 7 February 2025. Credit: T. Schneider/ Shutterstock.

The UK’s Payment Systems Regulator (PSR) is considering the introduction of a cap on cross-border card fees, following a review that found that these fees had risen to “unduly high” levels for European consumers purchasing online from UK businesses.  

This follows the UK’s departure from the European Union, which led to the cessation of the bloc’s interchange fee cap. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The PSR has confirmed that the fee hikes have cost UK businesses an additional £150-200m ($189m – $252m) annually.  

The review has concentrated on fees set by Mastercard and Visa, which dominate the UK’s debit and credit card market with a combined 99% share.  

The PSR’s final report, published after its interim report in December 2023, confirms that increases are detrimental to UK businesses and consumers, and that the market is not functioning well. 

Its assessment indicates that Mastercard and Visa lack effective competitive constraints and no evidence of a specific assessment which has allowed them to raise fees without justification.  

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The regulator is now seeking feedback on a potential interim cap on fees until 7 February 2025. 

Subject to the consultation’s outcome, the PSR is proposing a two-stage intervention.  

This would involve introducing an interim cap on fees, with the regulator also suggesting various options, including reinstating pre-increase levels or setting levels that would cover transaction costs.  

PSR MD David Geale said:  “Cards are a popular way we make payments in the UK. Our findings confirm that, due to a lack of competition, Mastercard and Visa were able to raise cross-border interchange fees to an unduly high level, costing UK businesses hundreds of millions of pounds.   

“We have carefully considered the feedback we have received. We consider that consulting on a range of options for capping prices is the best way forward to ensure UK businesses get a better deal. We look forward to receiving evidence on these proposals from all interested parties.”