In wake of complaints, PSR announces card acquiring market review24th July 2018
On Tuesday July 24th, the UK’s Payment Systems Regulator (PSR) announced it will be reviewing the UK’s card acquiring services market. The three key areas being reviewed will include acquiring market competition, rising scheme fee costs, and cost structures, in particular whether card acquirers are failing to pass on savings from the EU-imposed IFR interchange fee caps.
Hannah Nixon, Managing Director of the Payment Systems Regulator, is quoted on its website as saying, “With more and more of us using our payment cards to make purchases, we want to make sure that retailers that accept card payments can access card-acquiring services that are competitive, offer value for money and are innovative – working in both their interests, and consumers’ interests too. This is about making sure that payment systems work well for everyone, and we will look to make changes if we think improvements should be made.”
CMSPI, retailers, the BRC, and other industry stakeholders have been campaigning for an end to excessive card fees for some time. We will be working with our clients to present evidence so that the review can help contribute to driving a low cost, innovative, diverse, and fair payments market for the benefit of merchants and consumers.Brendan Doyle | CMSPI CEO
The draft terms of reference for the market review are open for consultation until 14 September 2018. CMSPI will be in touch with clients in the coming days to begin gathering evidence for the consultation response.