The U.K.'s Payment Systems Regulator (PSR) detailed two-card fee market reviews on 21^st of June. One will examine the scheme and processing fees, and the other cross-border exchange costs.

Both assessments are focusing on Mastercard and Visa, which account for 99% of debit and credit card payments in the U.K. The PSR observed that acquirers' scheme and processing costs grew considerably from 2014 to 2018. Since then, scheme stakeholders have complained rising fees.

Cross-border interchange fees have also increased, according to the PSR. Visa and Mastercard have hiked these costs fivefold, according to the PSR. The body is reviewing "the reasoning underlying these hikes and whether they indicate a failing market."

Natalie Timan, the PSR's chief of strategy, stated, "We want to make sure retailers and consumers receive a good bargain."

Mastercard believes that Britain is one of the most innovative and competitive payment markets in the world. The business is committed to working with the PSR to increase options for everyone who makes and receives payments.

Visa says it's one of the most cost-effective and secure methods to pay and be paid, and it's devoted to offering consumers and businesses in Britain innovative, easy, dependable, and secure digital payments.

Maria Palmieri, Director, Public Policy, Yapily comments on the PSR’s card fees reviews:

“We welcome the PSR’s reviews, ensuring transparency and inclusivity is at the heart of the payments industry. The market power held by card schemes has led to high barriers to entry, a lack of transparency and a limited acceptance of payment alternatives, which has been detrimental to both merchants and consumers.   

“Open banking has the potential to transform the financial wellbeing of thousands of people by reducing costs, improving affordability and transparency, and building a fairer financial system for all. It can also help SMEs thrive in increasingly challenging times through decreased transaction fees, improving reliability, and reducing fraud opportunities. There are now 6 million active users of open banking in the UK and this is only the beginning.”