The third working paper published by the Payment System (PSR), includes card scheme and processing fees market review.
it points out the anticipated changes to these fees and calls for opinion on the regulators emanate thinking around the Mastercard and Visa, the huge card payment systems operators in the UK, approach fee changes and what their approach put forward regarding contention in the market.
Fees charged by Mastercard and Visa is referred to as scheme and processing fees, which is paid by the businesses to accept the card payments. These fees can influence the prices we pay for goods and services we buy therefore, PSR’s market review is worthwhile.
Today’s paper survey has a sample of around 20 fee changes between 2017 to 2021. According to PSR, the fee mentioned in this paper are those that have substantial impact on Mastercard and Visa’s revenue, or those that have altered more notably for acquirers and issuers.
The papers show the PSR’s advent thinking. The regulator’s basic view is that the gathered information will show that:
According to PSR the majority of raise in scheme revenue is came from changes in mandatory fees.
To reflect the value of their services schemes settled their fee level.
Rivalry pressure does not avert the scheme from raising mandatory fees.
PSR is now taking public views on this paper till 11 August.
One the PSR completed its analysis of the market, its aim to publish its results later this year.
