The PSR has published a summary of discussion points at the stakeholder roundtables it conducted in July 2024 on scheme and processing fees.
The discussion on remedies was split into four sections, each focusing on a remedy area identified in the PSR’s May 2024 interim report. The participants thoughts on each were as follows:
Information complexity and transparency
- Fee taxonomy:
- Participants supported a fee taxonomy remedy, highlighting difficulties in obtaining and understanding fee information. Stakeholders noted issues with fee classifications, billing codes, and information consistency.
- Acquirers and merchants emphasized the importance of timely invoicing and the ability to validate fees.
- There was support for standardised invoicing to improve clarity, though concerns about costs were raised. Merchants found standardised invoicing beneficial for understanding varying fees between different acquirers.
- Service level agreements (SLAs) received wide stakeholder support, although there were queries on how such a remedy would be enforced and the consequences of non-compliance. Stakeholders also noted the need for effective feedback processes.
- Fee simplification:
- Stakeholders recognized the complexity of pricing information and the potential challenges of bundling and fee increases.
- Merchants and issuers supported fee simplification to enhance understanding and reduce the number of separate fees.
- Information provision to merchants:
- Merchants were supportive of improved information provision, while acquirers preferred maintaining direct relationships with merchants.
- Delays in fee change notifications to merchants were noted, and tools for better communication suggested.
Mandatory consultation and timely notification
- There was a mixed reactions on the idea of mandatory consultation, with concerns raised about its practical impact and resource demands.
- Involving merchants in the consultation process had mixed feedback. While one stakeholder raised that early merchant feedback could be beneficial, others had concerns that involving merchants in consulting could cause the process to become overly complex.
- Timely notification was positively received, with stakeholders valuing longer notice periods for fee changes.
- Stakeholders generally supported an interim remedy to prevent delays in implementing a lasting solution resulting from any legal action after the final report is published.
Pricing methodology and decision-making governance
Few stakeholders commented on this remedy, but those who did thought it might be helpful for understanding fee decisions. However, some concerns were raised about the remedy’s effectiveness in addressing fee increases.
Regulatory financial reporting
Stakeholders welcomed regulatory financial reporting, but had questions around its practical implementation and concerns about data presentation.