UK Retailers Push for Regulation on Rising Card Payment Fees

Retailers demand action from the Payment Systems Regulator as card fees rise over 25% in a year, while cash usage grows for budgeting amid the cost-of-living crisis.

• The British Retail Consortium (BRC) reports a 25% increase in card payment fees in 2023, costing retailers an additional £380 million, with total fees reaching £1.64 billion.
• Retailers are urging the Payment Systems Regulator (PSR) to implement reforms, including price caps and transparency measures, to address rising card fees and lack of competition.
• Cash usage increased for the second consecutive year, accounting for 19.9% of retail transactions in 2023, as consumers sought to budget more effectively during persistent inflation.
• Debit cards remained the dominant payment method, representing 62% of transactions, while the average transaction amount dropped slightly to £22.03.
• Advocacy groups highlight the importance of cash access for vulnerable populations, citing concerns over exclusion from essential services and venues increasingly going cashless.

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