The Payment Systems Regulator (PSR) published the final report of its market review into card scheme and processing fees on 6 March 2025, under the reference MR22/1.101. The review examined the fees that UK businesses pay when consumers use Mastercard or Visa debit and credit cards1.
The PSR found that Mastercard and Visa increased their core scheme and processing fees to acquirers by at least 25% since 2017, costing businesses at least £170 million extra per year1. It also found that a lack of easy-to-understand fee information led to costs for acquirers and merchants1.
"Mastercard and Visa increased their core scheme and processing fees to acquirers by at least 25% since 2017"
Alongside the final report, the PSR published a consultation paper on proposed remedies, CP25/1, which set out four measures1:
| Proposed remedy | Aim |
|---|---|
| Better information for merchants and acquirers | Requiring schemes to provide more fee information so merchants can better understand the fees they are charged and ultimately reduce costs |
| Regulatory financial reporting | Allowing the PSR to monitor and understand the schemes' financial performance on fees charged in the UK |
| Better pricing governance | Requiring schemes to improve their processes around pricing decisions and record keeping |
| Publication of more information by schemes | Improving accountability and transparency |
The PSR said the consultation was open to anyone with an interest in card payments in the UK, particularly issuers, acquirers, card scheme operators, businesses and cardholders1. The consultation closed on 28 May 20251. On 7 May 2025 the PSR amended the document, updating cross-references throughout the report to correct instances where they were incomplete, missing or incorrect, and removing questions 18 and 19 which it said were incorrectly included1.
Why it matters for households
Card scheme and processing fees are paid by UK businesses when people pay with a Mastercard or Visa debit or credit card, and the PSR's finding is that these core fees have risen by at least 25% since 2017, at a cost to businesses of at least £170 million extra per year1. The review concerns the fees charged to acquirers and merchants rather than the interest or charges on a credit card account, but the PSR's stated concern is how the market for card interchange and scheme fees works for the businesses that accept cards1. The proposed remedies centre on information: more fee detail for merchants and acquirers, financial reporting to the regulator, changes to schemes' pricing governance, and more published information1. The PSR has not reported that any of these measures is in force; they remain proposals on which it consulted1.
What happens next
The consultation on the proposed remedies closed on 28 May 20251. The PSR has published stakeholder submissions to the CP25/1 remedies consultation1. No date for a decision on the remedies, or for any of them taking effect, is given in the published material1. The PSR's wider work on payment systems regulation continues alongside this review1.
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