Mastercard, Visa Cross-Border Interchange Fees Too High, U.K. Regulator Provisionally Finds
December 13 2023 - 2:56AM
Dow Jones News
By Ian Walker
The U.K. Payment Systems Regulator said that it believes
Mastercard and Visa have likely raised cross-border interchange
fees on credit and debit cards to an unduly high level, and
provisionally plans to cap those fees.
The regulator said Wednesday that it estimates U.K. businesses
paid an extra 150 million pounds to GBP200 million ($188.4 million
to $251.3 million) due to the fee increases.
It said that the cap will protect U.K. businesses while is
seeking views on its provisional findings and a proposed approach
to remedies to help inform the final report.
"In this market review we have provisionally found that the fees
charged by Mastercard and Visa to U.K. businesses which accept
payments from within the EEA are likely too high. In short, at this
stage, we do not think this market is working well," PSR Managing
Director Chris Hemsley said.
The regulator has set a deadline of Jan. 31 for interested
parties to comment on its provisional findings.
Visa and Mastercard didn't immediately respond when approached
for comment.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
December 13, 2023 02:41 ET (07:41 GMT)
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