Mastercard, Visa and Revolut have lost a legal challenge against the UK payments regulator’s plans to introduce a cap on card fees on international transactions.
The three firms brought a case at London’s High Court after the Payments System Regulator (PSR) said in December 2024 that it would consult on introducing a cap on interchange fees.
Interchange fees are levied on banks by Visa and Mastercard when a consumer from one country purchases something from a merchant in another country.
The PSR had previously voiced concerns that the firms had raised such fees to an ‘unduly high level’.
Mastercard, Visa and Revolut lost a challenge against the Payments Systems Regulator over the regulator’s plans to introduce a cap on international transaction card fees
Mastercard, Visa and Revolut argued that the PSR did not have the power to impose price caps.
But High Court Judge John Cavanagh today ruled that the regulator, which merged with the FCA last year, has the authority to impose its proposed price caps on interchange fees.
The level of the price caps and timing of their implementation are yet to be decided.
Mastercard declined to comment. Visa and Revolut did not immediately respond to a request for comment on today’s ruling.
Visa previously said it disputed the PSR’s findings and said price caps can ‘negatively impact the value people and businesses receive’ from card payments.
PSR managing director David Geale welcomed the decision which he said ‘confirms our powers to ensure card payment costs are fair for UK businesses and consumers’.
‘This enables us to drive forward the work we have been doing to ensure cross-border interchange fees are set at an appropriate level.’
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