PSR consults on transparency and governance changes for scheme and processing fees

The PSR is consulting on proposed changes to improve transparency and governance in fees.

The changes follow the PSR’s market review, which concluded that Mastercard and Visa are subject to ineffective competitive restraints and do not provide sufficient information on their fees. The final report noted that fees had risen substantially in recent years, with no clear evidence that fees were set on the basis of detailed cost analysis, competition or innovation. There was also evidence that both providers’ profit margins were higher than would be expected in competitive markets.

In April 2025, the PSR published a remedies consultation which considered four potential remedies to address these issues. It is now consulting on how to take forward two of these proposals:

(1) Information, transparency and complexity (ITC) remedy

Under this proposed direction, each scheme would be required to give acquirers clear and accurate information that enables them to understand scheme and processing fees they are charged (including existing, new and modified fees).

Specifically, the schemes would need to provide:

• For existing fees:
  • the minimum information necessary for acquirers to understand the nature
    of scheme and processing fees and how they are triggered; and
  • the minimum information that allows acquirers to perform effective reconciliation
    of their fees in a relevant billing period.
• For new and modified fees:
  • the minimum information necessary for acquirers to understand new and
    modified scheme and processing fees and how they are triggered 6 months
    before they are implemented; and
  • the minimum information acquirers need to understand the financial impact of new or modified behavioural fees on request and make it available 3 months before
    its introduction, or a change is implemented.

The PSR decided not to pursue two other components of this proposed remedy, namely that schemes be required to respond meaningfully and promptly to acquirers on fee-related queries, and that schemes provide merchants with information on fees charged to acquirers.

(2) Pricing governance remedy

This remedy is centred around the Pricing Decision Principle, namely paying due regard to service users’ interests. Under this proposed direction, each scheme will be required when deciding to change or introduce new fees for acquirers, to:

• Pay due regard in pricing decisions to the Pricing Decision Principle; and
• Compile records setting out the reasons underpinning these fee decisions, and how they have complied with the above principle.

The PSR also intends to implement regulatory financial reporting to ensure that it has access to suitable data to reach firm conclusions on the profitability of the schemes. It intends to consult on a draft direction for this remedy by 31 March 2026.

The PSR is no longer pursuing the fourth proposed remedy, namely to publish schemes’ information on profitability and pricing decision making to increase transparency and hold schemes to account.

The consultation closes on 13 February 2026.