Mastercard, Visa, and Revolut have lost a legal challenge against the UK’s Payments System Regulator (PSR) regarding proposed caps on cross-border card fees. The challenge was brought after the PSR announced in December 2024 that it would consult on capping fees charged when European consumers make online purchases from UK businesses post-Brexit. The PSR had previously voiced concerns that Mastercard and Visa had increased these fees to ‘unduly high’ levels.
Mastercard and Visa are global payment technology companies that facilitate electronic payments. Revolut is a British fintech company that offers banking services. The three companies argued that the PSR lacked the authority to impose price caps. Judge John Cavanagh dismissed the challenge, ruling that the PSR does indeed have the power to implement its proposed price caps on interchange fees.
Mastercard has declined to comment on the ruling. Visa had previously stated that it disputed the PSR’s findings, arguing that price caps could ‘negatively impact the value people and businesses receive’ from card payments. Revolut did not immediately respond to requests for comment.
David Geale, managing director of the PSR, welcomed the High Court’s decision. He stated that it ‘confirms our powers to ensure card payment costs are fair for UK businesses and consumers.’ Geale added that the ruling enables the PSR to continue its work to ensure cross-border interchange fees are set at an appropriate level.
