Britain's Payments System Regulator (PSR) announced a consultation on whether to introduce a cap on cross-border card fees charged when European consumers make online purchases from UK businesses. The PSR concluded that Mastercard and Visa had raised these fees to 'unduly high levels' due to a lack of competition.
The regulator's interim findings indicate that these fee increases have cost UK businesses an estimated £150-200 million ($189-252 million) extra per year since Brexit, when the EU's longstanding cap ceased to apply in Britain. The review focused on Mastercard and Visa, which account for 99% of debit and credit card payments in the UK.
The PSR is consulting on a potential short-term, interim cap on fees, with feedback invited until February 7, 2025, ahead of a potentially longer-lasting cap. Mastercard stated it continues to dispute the overall findings and emphasized the importance of ensuring any measures do not lead to uncertainty or unintended consequences.
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