PSR has published its interim report with provisional findings on the supply of card-acquiring services. It says merchants should shop around to get a better deal from their provider or switch to a new one, but that many are not doing this.
On the whole, the study found the market is working well for the largest merchants, but found issues with merchant contracts for card acquiring services, POS terminal contracts and difficulties for merchants to compare prices. It recommends;
- that all contracts for card-acquiring services should have an end date;
- that there should be a limited length for POS terminal contracts so they do not constantly auto-renew and can be exited without penalty; and
- making it easier for merchants to research and compare their options.
PSR welcomes feedbacl by 8 December and will then consider feedback before publishing its final report in 2021.