From Investing.com: 2024-05-21 04:20:33

The Payment Systems Regulator found that Visa and Mastercard have increased fees by over 30% in real terms in the past five years, without a corresponding improvement in service quality. Businesses in the UK are estimated to be paying an additional £250 million annually due to fee hikes, with little competition to push prices down.

Visa and Mastercard dominate the UK payment card market, leading to concerns about lack of competition and transparency. Attempts to create local rivals in Europe have failed, prompting calls for a “digital alternative”. The PSR is proposing remedies for consultation to address the issue, with a final report expected in the final quarter of the year.

Visa defended its fees, citing the value it provides in security and operational resilience. Mastercard disagreed with the PSR’s findings, claiming a competitive payments industry in the UK. The PSR aims to increase transparency and scrutiny over Mastercard and Visa’s operations through proposed remedies, with a public consultation open until July 30.



Read more at Investing.com: Britain seeks to rein in Mastercard and Visa fees on retailers By Reuters