Mastercard, Visa, and Revolut have failed to win a legal case against the UK’s payments regulator over plans to introduce a cross-border card fees cap.
On 15 January 2025, the three companies lost the legal case to the Payments System Regulator (PSR) regarding its intention to institute a cap on cross-border card fees.
Background and further details
Mastercard, Visa, and Revolut started a case at London’s High Court after the Payments System Regulator stated in December 2024 that it would discuss whether to introduce a cap on fees charged when European consumers buy online from UK businesses. Previously, the PSR had also raised concerns over Mastercard and Visa raising fees to an improperly high level.
The three companies contended that the UK’s payments regulator did not have the capabilities to implement price caps. However, Judge John Cavanagh rejected their case and ruled that the PSR does actually hold the power to introduce its proposed price caps on interchange fees.
According to Reuters, Mastercard declined to comment on the matter, while Visa and Revolut did not immediately respond to a request for their opinion on the outcome. Prior to this, Visa stated that it disputed the PSR’s findings, mentioning that these price caps could have a negative impact on the value both individuals and businesses receive from card payments.
When it comes to the PSR, David Geale, the managing director of the regulatory body, welcomed the decision. He underlined that it confirms the powers of the PSR to ensure card payment costs are fair for UK businesses and consumers. Also, David Geale said that this allows the payments regulator to advance the work it has been doing to facilitate an appropriate level for cross-border interchange fees.
At the time of writing, the exact level of price caps, as well as the implementation timing, have yet to be decided.
