pc
nid 94341
Jul 31, 2026
csoo@vixio.com
United Kingdom
Payment Systems Regulator
horizon scanning
84% of draft length
draft in Generated
Generated
2097 charsUnited Kingdom Payment Systems Regulator Strengthens Oversight of Mastercard and Visa
On July 30, 2026, the Payment Systems Regulator (PSR) issued two directions to Mastercard and Visa following its market review of card scheme and processing fees in the United Kingdom. The PSR confirmed new requirements to enhance transparency and accountability in how the card schemes operate.
Card scheme and processing fees are charged by Mastercard and Visa to acquirers—the businesses that process card payments—and these costs are ultimately passed to consumers through prices for goods and services. The PSR's market review found that acquirers have struggled to understand these fees and reconcile them with billing statements, particularly as fees have risen significantly ahead of inflation in recent years. The PSR also identified a lack of transparency in Mastercard and Visa's internal pricing decision-making processes.
The first direction requires Mastercard and Visa to provide acquirers with substantially clearer information about every fee charged, including what the fee is, how it is triggered, and how it is calculated. This will enable businesses to verify their bills more easily, avoid unnecessary charges, and compare optional services across providers. The second direction, termed the Pricing Governance remedy, requires Mastercard and Visa to consider the interests of businesses relying on their services when making pricing decisions and maintain clear records of their reasoning. David Geale, managing director of the PSR, said the measures "will improve transparency around card scheme and processing fees, make it easier for acquirers to reconcile charges, and strengthen accountability for Mastercard and Visa's pricing decisions."
The Pricing Governance remedy will take effect within four months. The requirements for clearer information will be implemented over 12 months to accommodate necessary system changes. The PSR is also progressing work on Regulatory Financial Reporting, which will require Mastercard and Visa to report on their UK card business financial performance, enabling the regulator to monitor fee trends and profitability more closely.
Agent draft
Not run yet.
Published
1757 charsUK's Payment Systems Regulator Publishes Policy Statement Strengthening Oversight of Mastercard and Visa
On July 30, 2026, the Payment Systems Regulator (PSR) issued two directions to Mastercard and Visa following its market review of card scheme and processing fees in the United Kingdom. The PSR confirmed new requirements on information, transparency and complexity (ITC) and pricing governance.
PS26/1 introduces the following changes:
The ITC remedy requires clearer information on existing fees (ITC1) and on new or modified fees six months before implementation (ITC2), with behavioural fee impact information available on request three months ahead. Transaction-level identifiers have been dropped in favour of "fee logic" sufficient to reconcile billed fees to originating transactions. The schemes must comply with the substantive requirements of the ITC Direction from July 2027.
The Pricing Governance remedy places three obligations on the schemes: they must pay due regard to a Pricing Decision Principle based on service users' interests, compile an Acquirer Fee Decision Record (AFDR) for each in-scope decision, and submit an annual overview and compliance report signed by a senior manager. Two timing points changed following consultation, in that the PSR will not request an AFDR until at least 30 days after the relevant decision, and schemes then have ten working days to produce it rather than five. Implementation runs to four months from publication, so fee decisions must be compliant from November 2026.
The materiality threshold rises from £100,000 of net revenue to £250,000 of gross annual revenue. The same figure now applies to both remedies.
Relevant fee decisions must comply with the Pricing Governance Direction from end of November 2026, and the substantive requirements of the ITC Direction apply from end of July 2027.