This document was updated on 2 November 2022.
We have set out the next stage for our two market reviews into card fees, on scheme and processing fees and cross-border interchange fees. Here, we set out the details of our market review of scheme and processing fees.
Cards are the most popular way for consumers to make a payment. To accept card payments, businesses must pay certain fees which can ultimately impact the cost we all pay for goods and services. We want to understand whether card payments are working well and to make sure that businesses, and ultimately consumers, get a good deal.
The final Terms of Reference (ToRs) are an important step in our investigations, setting out clearly the work we will undertake and an indicative timeline on key milestones. We have set out an ambitious timetable, which depends on constructive and timely engagement from Visa, Mastercard and other stakeholders.
Scheme fees are the fees charged by card payment system operators in return for services relating to participation in the card system. Processing fees are charged by processing entities to their customers for authorisation, clearing and settlement.
The aim of the scheme and processing fees market review is to understand if the supply of scheme and processing services is working well, with regards to our statutory objectives of competition, innovation and service-user interests.
We expect to publish our interim findings towards the end of 2023 and a final report, including any proposed remedies, in 2024.
What this document contains and who should read it
The documents confirm our scope, approach and timeline and is relevant to various individuals or organisations with an interest in using or making card payments, in particular issuers, acquirers, schemes, merchants and cardholders.
What happens next
We will continue to engage with a wide range of stakeholders as we progress our investigations, through further updates, publications, and consultations.
The Card Scheme and Processing Fees market review team welcome further views and evidence that will help inform our work.
You can email us at firstname.lastname@example.org or write to us at:
The Card Scheme and Processing Fees
Payment Systems Regulator
12 Endeavour Square