On 6 March 2025, the Payment Systems Regulator (PSR) published the final report of its market review into card scheme and processing fees (MR22/1.10).

Background

The PSR explains that it is crucial this market works well, as cards are the most popular way for consumers to pay for goods and services in the UK. Each time someone uses a debit or credit card for transactions with UK businesses, those businesses pay scheme and processing fees, some of which are mandatory or core and some of which are optional. Following increases in these fees, PSR has been examining their levels to understand whether they, or other factors, indicate the market is not working well.

Findings

Through its market review, the PSR found that between 2017 and 2023, core scheme and processing fees were raised by more than 25% in real terms. It also found that the schemes do not provide sufficiently clear and detailed information to acquirers or merchants, resulting in them receiving complex or incomplete information on scheme and processing services and fees, raising both acquirers’ and merchants’ costs and preventing them from negotiating a better deal.

As a result of its findings, the PSR plans to consult shortly on potential remedies to address the issues identified in the report.