In November 2020, we issued information notices to two card schemes to help us to monitor compliance with the caps in the IFR. As part of the information we requested, we asked the card schemes to provide information on transaction values and respective interchange fees, for a subset of acquirers and issuers in the UK during the period of 1 January 2019 to 31 December 2019. In addition, we also requested information on the card scheme’s assessment of net compensation for the same sub-set of issuers, as it relates to the anti-circumvention provision of the IFR.
As has been done previously, we have chosen to publish these information notices in the interests of transparency because we are asking the card schemes to report on data relating to individual issuers and acquirers. The notices for both schemes are shown as a single version, which is redacted of identifying information. The published single version does not include slight variances that existed in the issued notices, that were necessary customisations for each scheme.
What do the information notices contain?
The information notices consist of:
- a covering letter
- instructions that the card schemes should follow when compiling the information requested
- questions which specify the information each scheme should provide.
We will use the information we receive to inform our work to monitor the compliance with the IFR caps of the issuers and acquirers who are within the scope of this year’s requests. If we find a regulated person has failed to comply with an obligation imposed by the IFR, we have the power to take enforcement action where appropriate. This includes the power to publish details of a compliance failure or impose a financial penalty for the compliance failure and publish details of that penalty.
Our guidance sets out the approach that the PSR will generally apply in relation to its functions for the IFR in the UK.
We consulted on proposed changes to our guidance following the UK’s withdrawal from the European Union and changes to the regulatory framework. We intend to publish the final updated Guidance later this year.
For more information about the IFR and the PSR’s role, please see our website.