UK Regulator Proposes Cap on Visa, Mastercard Fees

The Payment Systems Regulator aims to revert EU-UK transaction fees to pre-Brexit levels, amidst resistance from Visa and Mastercard.

UK's Payment Systems Regulator (PSR) proposes capping EU-UK fees charged by Visa and Mastercard at 0.2% and 0.3% for debit and credit card transactions respectively.
Since Brexit, Visa and Mastercard have increased their charges five-fold, to 1.15% and 1.5% for debit and credit cards, costing UK businesses up to £200m a year in extra costs.
PSR claims that businesses have little choice but to accept Mastercard and Visa, which account for 99% of all UK debit and credit card transactions.
Mastercard and Visa dispute the PSR's findings, arguing that the higher fees are necessary to combat greater risk of fraud in overseas transactions.
The PSR will now solicit feedback on its proposals, proposing the 0.2%-0.3% cap as an interim level, and says a permanent cap could adjust this.