Treasury Committee questions regulator on increasing cost of card payments for businesses
20 May 2022
The Treasury Committee will question the leadership of the Payment Systems Regulator (PSR) on how they can protect businesses from rising card fees at 2.15pm on Wednesday 25 May.
- Watch Parliament TV: The work of the Payment Systems Regulator
- Inquiry: The work of the Payment Systems Regulator
- Treasury Committee
In October 2021, Mastercard and Visa announced increases on cross-border interchange fees between the UK and EU for debit and credit card transactions, from 0.2% to 0.3% and 1.15% to 1.5% respectively.
Scheme fees, which are paid by businesses to card payment operators for use of the service, have also risen substantially, with average fees more than doubling between 2014 to 2018.
In correspondence with the Committee, the PSR outline that they have not seen any evidence that the recent fee rises have been warranted by increases in costs for the card issuer. The PSR intends to examine the basis for card scheme fees and cross-border interchange fees.
The Committee will question the leadership of the PSR on the regulator’s role and success in promoting competition within the market, and how the PSR can ensure that the fees businesses incur for accepting cards as a payment method are fair and proportionate.
MPs will also question witnesses on the future of cash and the UK’s ATM network, the PSR’s card acquiring market review, and the new payments architecture.
The Committee recently published written evidence submissions from industry associations and experts on the work of the PSR which will inform the evidence session.
Wednesday 25 May in Committee Room 8, Palace of Westminster
- Chris Hemsley, Managing Director, Payment Systems Regulator
- Charles Randell CBE, Outgoing Chair, Payment Systems Regulator