We are carrying out two market reviews - scheme and processing fees and cross-border interchange fees. Here, we set out the details of our market review of UK-EEA consumer cross-border interchange fees.

The reviews focus on Mastercard and Visa as these two card payment system operators account for 99% of debit and credit card payments in the UK. 

Cross-border interchange fees have increased significantly in the last year. This affects fees for certain card transactions between the UK and the EEA, where the cardholder is not present (such as payments made by phone or online). Since the UK left the EU, Visa and Mastercard have increased these fees five-fold. The PSR wants to understand the rationale behind these increases and whether they are an indication that the market is not working well.

What this document contains

This document contains consultation questions based on our proposed scope and approach to our market review on UK-EEA consumer cross-border interchange fees.

What happens now?

The draft terms of reference for this market review are open for consultation until 5pm on Tuesday 2 August. The PSR is interested to receive feedback on these draft terms of references and welcomes any evidence in support of submitted views.

During the consultation period the PSR will also be running series of engagement events and will be encouraging stakeholders to take part to help shape the scope of the reviews.

You can email your comments to cardfees@psr.org.uk or write to us at:

Cross-border interchange fees market review team
Payment Systems Regulator
12 Endeavour Square
London E20 1JN

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