UK Finance’s Response to PSR Cross Border Interchange Fees Interim Report

UK Finance is delighted to respond to the Payment Systems Regulator’s (PSR) evaluation of cross-border card interchange fees and its interim report (referred to as the “Interim Report”). We acknowledge the complexity of this matter, particularly in light of the varying perspectives arising from different business models and roles within, or outside, the four-party arrangement.

It is of paramount importance that we emphasize the need to respect the intellectual property rights associated with the content of the Interim Report. Any sharing, distribution, or republication of the document without the express written consent from the author or content managers at UK Finance will be considered a violation of the UK Finance website terms of use.

The PSR’s Interim Report underscores the necessity for a collaborative effort among industry participants, including both card scheme operators and payment service providers, to achieve a fair solution. This aligns with the views expressed by the UK Finance experts in the sector, who have advocated for a balanced approach that considers the interests of all stakeholders.

We would like to reaffirm our commitment to nurturing a fair and transparent interchange fee system that promotes healthy competition and ultimately benefits consumers. It is crucial to strike a balance that allows for adequate compensation for all parties involved, while also preventing any potential negative consequences on the overall efficiency of the payment systems.

In line with our dedication to promoting constructive dialogue and cooperation, UK Finance continues to be open to engaging with relevant stakeholders to further explore the diverse perspectives presented in the Interim Report. We believe that an open exchange of ideas and insights will be instrumental in shaping the future direction of cross-border interchange fees.

Furthermore, the key objective is to ensure that any future regulations put in place are well-informed, proportionate, and conducive to the continued innovation and stability of the payments industry. With this in mind, we will continue to collaborate with the PSR and other regulatory bodies to offer our expertise and input as the review progresses.

As the regulatory landscape evolves, it is imperative for industry representatives like UK Finance to remain actively engaged and committed to upholding the highest standards of professionalism and integrity. We are firmly dedicated to upholding these principles as we navigate through the complexities of the cross-border interchange fees issue and actively contribute to shaping positive and sustainable outcomes for all stakeholders involved.