Regulator poised to act on card payment fees

17 Mar 2025

The Payment Systems Regulator (PSR) is set to act to reduce card payment fees for businesses and consumers in the UK.

In a report on the matter, the PSR found that both Mastercard and Visa have increased their core scheme and processing fees by 'at least' 25% since 2017, with a net cost to businesses of at least £170 million extra per year.

The PSR stated that cards are critical to the smooth running of the economy, and play a big role in everyday transactions. Issues in the card market can have a negative impact on businesses and consumers.

Commenting on the issue, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said: 'The finding from the regulator that card fees cost business at least £170 million per year is not a surprise to small businesses, but it illustrates one of the unavoidable cost pressures they are facing.

'With just two giants now controlling over 95% of UK card transactions, both are 'must-takes' for small retailers. The lack of downward competitive pressure on the supplier side allows fees to rise, but these hit small business growth and investment and feed through into higher prices.'