Why are we publishing this document?
We adopted the current PSR fees structure in 2018/19, as outlined in our policy statement PS18/12.
We have been reviewing this structure and considering whether it remains appropriate in the current payments landscape. Although the current fees regime will remain in place, we are now consulting on proposed changes to the way fees are allocated, to ensure that payment system operators (PSOs) contribute to the cost of special project work that is directly relevant to them.
What does this document contain?
We are consulting on changes to the structure of regulatory fees for the PSR. We are proposing these changes to ensure that PSOs contribute to the cost of special project work that is directly relevant to them. This will help the PSR effectively prioritise its resources so it can deliver the important work set out in its Strategy, protecting the interests of people and businesses and promoting effective competition and innovation in payments.
We are outlining two main proposals:
- A minimum threshold for charging fees: in relation to the formula we have used to calculate fees since 2018, we propose to charge nothing to fee payers where the calculated fee is less than £100, then distribute the funding shortfall across remaining fee payers. This would provide a time and cost saving to small fee payers by reducing administration, and free up our time for more impactful activities.
- A new mechanism to charge ‘special project fees’ which would ensure that PSOs contribute to the cost of special project work that is directly relevant to them. These would be one-off, significant activities that are time limited, call for extra resources and focus on the activity of one or more PSOs. Examples of ‘one-off, significant activities’ could include designation activity, market studies or market reviews, such as the card fees market reviews. PSOs don’t currently contribute to the PSR’s regulatory costs so this would more fairly distribute the costs across industry. This will also allow the PSR to carry out special work, including the card fees market reviews, which are important in protecting businesses and consumers, without impacting other regulatory work. We propose to charge PSOs with a for-profit business model.
Who should read this document?
This document is relevant to:
- participants in regulated payment systems under FSBRA
- regulated persons under the PCIFRs
- regulated persons under the PSRs 2017
What happens next?
This consultation is open until 5pm on Friday 3 February 2023. You can email us at PSRfees@psr.org.uk or write to us at the following address:
Payment Systems Regulator
12 Endeavour Square
London E20 1JN