Frequently asked questions
We'll keep this section updated with common questions and answers
Access to bank accounts
Q: Can the PSR help payment service providers gain access to a bank account?
A: Insofar as payment service providers need access to a bank account in order to access payment systems we will examine this issue as part of our work on access, particularly indirect access.
Anti-money laundering and ‘Know Your Customer’ requirements
Q: What is the PSR’s position on the anti-money laundering and ‘Know Your Customer’ requirements for payment service providers?
A: These are primarily issues for HM Revenue & Customs and the Financial Conduct Authority. If the requirements are causing barriers to accessing the payment systems then we will consider them as part of our work on access, including indirect access.
New payment service providers seeking authorisation
Q: Does the PSR authorise payment service providers, such as money remittance service providers?
A: No, the PSR does not issue authorisations. You will need to apply to the FCA for authorisation as a payment service institution. Further details on how to apply can be found here.
The Interchange Fee Regulation
Q: Will acquirers pass on interchange reductions to merchants?
A: The IFR aimed to reduce the costs for merchants of accepting card payments by capping the interchange fees that acquirers pay to issuers on certain consumer debit and credit card transactions. The IFR did not cap the fees that merchants pay to acquirers. It relied on competition between acquirers to ensure that the benefits of the interchange fee caps flowed through to merchants, and ultimately consumers.
Some stakeholders have raised concerns that acquirers have not passed on the savings they make from the interchange fee caps to smaller merchants. These concerns, amongst others, prompted us to begin a market review of the supply of card-acquiring services. We published the final Terms of Reference (ToR) in January 2019. Read more about our Market review into the supply of card-acquiring services.