UK court backs cap on cross-border card fees
Jan 16, 2026
London [UK], January 16: A United Kingdom (UK) court on Thursday upheld the powers of the country's payments watchdog to cap cross-border card fees on online transactions, rejecting a legal challenge brought by Visa, Mastercard and fintech firm Revolut.
The High Court in London ruled that the Payment Systems Regulator (PSR) is legally entitled to impose price caps on so-called interchange fees - charges paid between banks when a card is used. The case concerns transactions between UK merchants and customers in the European Economic Area, particularly online "card-not-present" payments, where fees have risen sharply since Brexit.
After the UK left the European Union, Visa and Mastercard raised default interchange fees on these transactions. According to the PSR, fees on consumer debit cards increased from 0.2 percent to 1.15 percent, while credit card fees climbed from 0.3 percent to 1.5 percent. The regulator estimates the higher charges have cost UK businesses between 150 million pounds (201 million U.S. dollars) and 200 million pounds annually.
The PSR said that competition in cross-border online payments was not working effectively and that a cap was needed to protect UK merchants and consumers. It proposed the measure following complaints that post-Brexit fee increases were excessive.
Visa, Mastercard and Revolut argued in court that the regulator had exceeded its statutory powers and that a cap would undermine competition, particularly for European banks and fintech companies that rely heavily on payment income. They also said costs had risen due to the growing use of digital wallets such as Apple Pay and Google Pay.
The High Court rejected those arguments, clearing the way for the PSR to proceed. However, the regulator has yet to decide the level of the cap or when it will take effect.
Source: Qatar Tribune
