The PSR has published its final market review into the supply of card-acquiring services. The report concludes that the supply of card-acquiring services does not work well for SME merchants and large merchants with annual card turnover up to £50m.
The report finds three main features that restrict the ability of merchants to search and switch:
- difficulty in getting prices and approaches to headline rates from acquirers and ISOs such that it is hard to compare prices for them and for payment facilitators;
- lack of a clear review trigger in agreements which are of indefinite duration; and
- costs and practical difficulties if a merchant needs a new POS terminal if switching.
PSR will publish a remedies consultation in early 2022.