Following its initial consultation, the PSR has now published its provisional decision in relation to remedies for the card-acquiring market review. The PSR has launched a second consultation on proposals for three remedies which it has developed following the evidence received in response to the first consultation. These are:
- greater transparency – summary boxes containing bespoke key price and non-price information will be sent to each merchant and can be used alongside new online quotation tools to help merchants compare prices and other service features more efficiently;
- greater engagement – trigger messages will be sent from providers to merchants to prompt them to shop around, re-negotiate their contract or switch to get the best deal they can; and
- the ability to change providers easily – the PSR intends to introduce a maximum duration of 18 months for POS terminal lease and rental contracts, so merchants are not discouraged from switching. A maximum 30 days’ notice after any renewal will also be introduced.
The PSR will implement these remedies by issuing specific directions to the largest providers of card-acquiring services to merchants.
The consultation closes on 3 August 2022.