Overview
- High Court Judge John Cavanagh dismissed a judicial review by Mastercard, Visa and Revolut that challenged the Payment Systems Regulator’s legal powers.
- The decision allows the regulator, now within the FCA, to continue designing a cap on interchange fees for EU customers buying online from UK merchants, with the level and start date still undecided.
- The PSR has cited increases from 0.2% to 1.15% on debit and 0.3% to 1.5% on credit, along with a 25% rise in scheme processing fees since 2017 that it estimates costs UK businesses about £170m a year.
- PSR managing director David Geale said the judgment confirms the watchdog’s authority to ensure card payment costs are fair for businesses and consumers.
- Visa and Mastercard dispute the regulator’s findings, arguing their fees reflect value and warning that caps could reduce benefits for users.