The Payment Systems Regulator's consultation on proposed remedies to the card scheme and processing fees market review closed on 28 May 20251. The consultation paper, CP25/1, set out possible remedies following the final report of the regulator's market review, published on 6 March 20251.
The final report 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. The PSR says cards are the most popular way for consumers to pay for goods and services in the UK, and that every time people use a Mastercard or Visa debit or credit card with UK businesses, those businesses pay scheme and processing fees, some mandatory or core and some optional1.
The consultation sought views on four proposed remedies1:
| Proposed remedy | What it covers |
|---|---|
| Better information for merchants and acquirers | Requiring schemes to provide more information on fees 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, so the PSR can better understand the appropriateness of these fees |
| Publication by schemes | More information published to improve accountability and transparency |
The PSR said the consultation was aimed at anyone with an interest in card payments in the UK, particularly issuers, acquirers, card scheme operators, businesses and cardholders1.
"Better information for merchants and acquirers by requiring schemes to provide more information on fees so merchants can better understand the fees they are charged and ultimately reduce costs"
The regulator amended the consultation document on 7 May 2025, updating cross-references throughout the report, including in the main body and footnotes, 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 fees are paid by businesses rather than by cardholders directly, so the immediate effect of any remedy falls on the firms that accept Mastercard and Visa payments. The PSR's finding that core scheme and processing fees to acquirers rose by at least 25% since 2017, at a cost to businesses of at least £170 million extra per year, sets out the scale it identified1. The proposed remedies concern what schemes must tell merchants and acquirers, what they must report to the regulator, how they govern pricing decisions and what they publish1. Whether any of that changes the costs faced by merchants, and how far those costs feed through to prices paid by consumers, is not settled by the consultation closing. The PSR has not reported a decision on the remedies in the material published with the consultation.
What happens next
The consultation closed on 28 May 20251. The PSR has published stakeholder submissions to CP25/1, listed as a document dated January 20261. No date for a final decision or for any remedies taking effect has been reported1.
The Payment Systems Regulator oversees card payment schemes in the UK. The consultations process sets out how responses feed into new rules.
Financial Ombudsman ServiceFree, independent help when a complaint about a firm is not put right
FSCSProtects your money if a bank, insurer or investment firm fails
FCA Warning ListCheck whether a firm is authorised before you deal with it
MoneyHelperFree, impartial money and pensions guidance, set up by government
Citizens AdviceFree advice on money, consumer and legal problems in England and Wales