PSR confirms competition concerns about cross border card fees and proposes price cap to protect UK businesses

The PSR has today published the final report of its market review into cross border interchange fees. The report finds that the high level of fees is harming businesses, so the PSR is also publishing a consultation on a proposed price cap remedy that seeks to protect UK businesses from overpaying these fees. 

Between 2021 and 2022, these fees rose significantly, costing businesses an additional £150–200 million annually. The PSR attributes these increases to a lack of competition and finds no justification for the higher fees. 

To address these concerns, the PSR proposes a price cap to protect businesses. It is consulting on introducing an interim cap while determining a longer-term solution. Feedback is invited until 7 February 2024. The aim is to ensure fairer fees for UK businesses and their customers.