The UK Payment Systems Regulator (PSR) has decided not to impose price caps on certain Visa and Mastercard fees despite finding that the two companies lack effective competition when dealing with merchants. This comes after the PSR acknowledged that fees have increased by over 30% in real terms over the past five years without a proportional improvement in service quality. The regulator plans to crack down on the lack of value for money provided by Mastercard and Visa.
The U.K. Payment Services Regulator (PSR) Found Visa/Mastercard fee levels increased by more than 30% in real terms over the past five years but acknowledged that some of increase may be due to optional services purchased by acquirers (e.g., value-add services may be a component https://t.co/zBZiFu0vx8
The Payment Systems Regulator said Tuesday that the two biggest card operators, Mastercard and Visa, do not give value for money on their services and that it will take steps to hold them more accountable. https://t.co/t2cygRhTkH
"Over the past five years, Mastercard and Visa have increased processing fees by more than 30% in real terms, but there is "little evidence" that the quality of their services has improved at the same rate, according to the [UK] regulator." $V $MA
PSR steps back from capping Visa and Mastercard fees despite lack of competition https://t.co/mi6rx6iCSb
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