The High Court in London has ruled that the UK Payment Systems Regulator has the legal power to cap cross‑border interchange fees, dismissing a challenge by Mastercard, Visa and Revolut.
The judgment confirms that the regulator can impose price caps on interchange fees linked to online card payments between the UK and the European Economic Area (EEA).
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According to a Reuters report, Mastercard, Visa and Revolut sought a judicial review after the regulator said in December 2024 that it would consult on capping interchange fees charged when EEA consumers buy online from UK merchants.
The regulator has previously said it is concerned that Mastercard and Visa increased cross‑border interchange fees to an “unduly high level”.
Between 2021 and 2022, both card schemes raised interchange fees on online transactions between the UK and the EEA. Debit card interchange fees rose from 0.2% to 1.15%, while credit card interchange fees increased from 0.3% to 1.5%.
The regulator has estimated that these changes added about £150m to £200m annually in extra costs for UK businesses, Financial Times reported quoting a briefing paper.
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By GlobalDataIn court, Mastercard, Visa and Revolut argued that the regulator does not have the authority to introduce price caps on these cross‑border fees. They also questioned its ability to decide the timing and level of any cap. However, Judge John Cavanagh rejected these arguments and ruled that the regulator can proceed with its proposed approach to regulating interchange fees.
Mastercard declined to comment to Reuters queries. Visa and Revolut also did not immediately respond to requests for comment.
In previous statements, Visa has disputed the regulator’s findings and has said that price caps can reduce the value that card payments provide to businesses and consumers.
Regulator managing director David Geale told the news agency that the ruling confirms its powers to ensure card payment costs are fair for businesses and consumers in the UK.
“This enables us to drive forward the work we have been doing to ensure cross-border interchange fees are set at an appropriate level,” he was quoted as saying.
The regulator has not yet set the level of any cap or a date for implementation.
