Regulator takes action against high fees impacting U.K. businesses

  • U.K. Payment Systems Regulator believes Mastercard and Visa have raised cross-border interchange fees to an unduly high level
  • Regulator plans to cap fees to protect U.K. businesses
  • Estimates U.K. businesses paid an extra £150-200 million due to fee increases
  • Seeking views on provisional findings and proposed approach to remedies
  • Deadline for comments on provisional findings is Jan. 31

The U.K. Payment Systems Regulator has provisionally found that Mastercard and Visa have raised cross-border interchange fees to an unduly high level. This has resulted in U.K. businesses paying an extra £150-200 million. In response, the regulator plans to cap these fees to protect U.K. businesses. Interested parties have until Jan. 31 to comment on the provisional findings.

Public Companies: Mastercard (MA), Visa (V)
Private Companies:
Key People: Chris Hemsley (PSR Managing Director)

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Factuality Level: 8
Justification: The article provides information from the U.K. Payment Systems Regulator stating that Mastercard and Visa have likely raised cross-border interchange fees to an unduly high level. It also mentions the estimated amount that U.K. businesses paid due to the fee increases. The article includes a quote from the PSR Managing Director and mentions the deadline for interested parties to comment on the findings. However, it lacks specific details on the evidence or methodology used by the regulator to reach its provisional findings.

Noise Level: 7
Justification: The article provides some relevant information about the U.K. Payment Systems Regulator’s investigation into Mastercard and Visa’s cross-border interchange fees. However, it lacks in-depth analysis, scientific rigor, and evidence to support its claims. The article also does not provide any actionable insights or solutions. Additionally, it includes some repetitive information and does not explore the consequences of the fee increases on businesses and consumers.

Financial Relevance: Yes
Financial Markets Impacted: Mastercard and Visa

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the U.K. Payment Systems Regulator’s plans to cap cross-border interchange fees on credit and debit cards charged by Mastercard and Visa. However, there is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com