Bank Cards: Fees and Charges
The question
To ask the Chancellor of the Exchequer, what discussions she has had with (a) the payment systems regulator and (b) representatives of the payments industry on the adequacy of interchange fee caps.
Answered by Emma Reynolds
Government ministers have meetings with a wide variety of organisations. Details of ministerial meetings are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-giftsand-overseas-travel
Domestic interchange fees are capped at 0.2% for consumer debit cards and 0.3% for consumer credit cards. The Payment Systems Regulator (PSR) is responsible for enforcing these caps. The PSR is independent of Government. However, the government continues to engage with them on their important work, including card fees.
The PSR has recently conducted a market review into cross-border interchange fees, fees charged when an EEA issued card is used at a UK merchant. It published its final report in December 2024 and is now considering its next steps.
The Government recently announced its intentions to consolidate the PSR and its functions primarily within the Financial Conduct Authority (FCA). The PSR continues to be an independent regulator with full access to its statutory powers in the interim. There will be no immediate changes to its functions and its work will continue, including its important role in regulating card fees.
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