PSR provisional finding on card schemes raises concerns

The PSR has published its provisional findings on competition in the cards schemes sector. It is concerned that the supply of scheme and processing activities is not working well and that there is no effective competition that would prevent Mastercard and Visa from raising prices. It also notes that pricing is complicated and that the last 5 years have seen significant price rises. As a result, UK businesses have little option but to pay the increased fees, as other methods cannot provide effective alternatives. The report sets out suggested potential remedies including greater transparency, and obligations on the two large providers to explain, consult on or document reasons for price changes.

The PSR asks for feedback by 30 July.

Emma Radmore