Britain’s payments watchdog will review banks who process card transactions on behalf of merchants, such as retailers, following concerns that customers may not be getting the best deal reported the Financial Times. The Payments Systems Regulator (PSR) on Tuesday said it was concerned that some retailers “are suffering significant harm because competition in the supply of card-acquiring services is not working well.”
The PSR published draft terms of its review into card-acquiring services provided by the mayor who accept and process card payments on behalf of a merchant for a fee.
Card acquirers have become increasingly essential for retailers as consumers have moved away from cash payments in recent years. In 2017 debit cards overtook cash as the most frequently-used payment form in the UK, and the trend is forecast to accelerate further.
The regulator announced it would also be looking into broader issues in the card-acquiring business, including a lack of transparency around fees and whether firms have made it too difficult for retailers to compare between and switch to different acquirers.
Full Content: Financial Times
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