PSR takes action against banks for non-compliance with the IFR

PSR has taken action against NatWest, RBS, Ulster Bank and Coutts for failing to comply with the Interchange Fee Regulation.

The banks incorrectly treated a number of cards as being ‘commercial’ when they should have been treated as ‘consumer’ cards. This meant that fees charged by these banks weren’t capped and were set at too high a level which resulted in both acquirers and, ultimately, merchants being overcharged.

The PSR found that the banks wrongly profited from c.£1.2m in excess interchange fees between March 2016-18. All those affected have since got their money back.

Lucy Hadrill