European Banks Warn Of Serious Concerns

UK Businesses Overcharged by £200m Due to Sharp Increase in Card Payment Fees

European Banks Warn of Serious Concerns

Background

The Payments Systems Regulator (PSR) in the UK has proposed a cap on interchange fees, the charges paid by retailers to banks for processing card payments.

Impact on UK Businesses

UK businesses have reportedly paid an extra £150-200 million in 2022 due to the surge in card payment fees.

EU Cap on Interchange Fees

The European Union (EU) has a cap on cross-border interchange fees, which retailers pay when customers use cards issued in other EU countries.

Banks' Concerns

European banks have expressed concerns about the PSR's proposal, claiming it could lead to higher costs for consumers and reduced innovation in the payment industry.

PSR's Proposal

The PSR's proposal includes an initial one-time limited fee cap of 0.2% on consumer debit card payments.

Impact on Cross-Border Payments

The proposed cap could potentially impact cross-border payments, as businesses may pass on the additional costs to consumers.

Negotiations Ongoing

Negotiations between the PSR and banks are ongoing, with the final outcome yet to be determined.

Sources

* PSR Proposes New Measures to Tackle High Fees on Card Payments * UK businesses 'overcharged £200m by card fee rise' * Britain's payments regulator proposes cap on cross-border card fees