On 24 July 2018, the Payment Systems Regulator (PSR) published draft terms of reference for a proposed market review into the supply of card-acquiring services in the UK (MR18/1.1). The review is designed to ensure that card-acquiring services remain competitive and fair for both merchants and consumers.
The review is prompted by concerns that card acquirers have not passed on the savings derived from the Interchange Fee Regulation to smaller merchants and a lack of transparency around the fees that merchants are required to pay to accept card payments.
The market review is also intended to cover the competition framework in the supply of card-acquiring services, fees paid by merchants and quality of services. Comments on the draft terms of reference close on 14 September 2018 with the final terms of reference to be issued by the end of 2018.