Hundreds of U.K. retailers urged an appeals court on Monday to rule that Visa and Mastercard overcharged them on swipe fees in the period after the European Union passed legislation capping them.
The first market review, on scheme and processing fees, stems from a previous market review carried out by the PSR on the card-acquiring market. In that market review, the regulator found that fees paid by acquirers had increased from 2014 to 2018. In January 2022, the regulator published its initial remedies in the market to make it more transparent and to allow acquirers to negotiate better terms with the card networks. However, the regulator still wants to examine the levels, structure and types of scheme and processing fees. This new market review will build on the card-acquiring market review, the regulator said.
“Cards are the most popular way for consumers to make a payment. To accept card payments, merchants must pay certain fees which can ultimately impact the cost we all pay for goods and services. We want to understand whether card payments are working well and to make sure that merchants, and ultimately consumers, get a good deal,” said Natalie Timan, head of strategy at PSR.
