High Court backs PSR’s powers to cap cross-border card fees

The Payment System Regulator (PSR) has welcomed the High Court’s decision to uphold its powers to regulate payment systems, following a legal challenge to its ability to cap cross-border interchange fees.

The challenge was triggered as a result of the PSR’s proposal to impose a cap on cross-border interchange fees. The PSR had found these fees to be unduly high, at the expense of UK businesses. This ruling enables the PSR to continue with its analysis of what the appropriate level these fees should be.

The Court’s decision ensures that the PSR retains the necessary powers to regulate payment systems effectively, supporting competition, innovation and service user interests across the sector.

David Geale, Managing Director of the PSR, said:

“We welcome the High Court’s decision, which 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.”

The PSR has consulted on the methodology for assessing an appropriate cap for outbound multilateral interchange fees and that the outcome of that consultation will inform the regulator’s next steps.