The Cost Methods Regulator has fined Barclays Financial institution £10 million for failing to provide retailers with full details about the charges hooked up to completely different card providers.
Barclays’ lack of transparency meant retailers weren’t totally conscious of the charges they have been paying so couldn’t successfully examine costs of card providers, store round to search out cheaper offers, or negotiate the perfect take care of Barclays.
Chris Hemsley, the PSR’s managing director, says: “It’s important that retailers and customers get worth for cash on fee providers – the interchange price guidelines are an vital a part of ensuring this occurs. Barclays’ failure to be clear with retailers in regards to the charges they pay for card providers meant retailers might have been lacking out on higher offers”.
The PSR’s investigation recognized that Barclays did not adjust to the IFR for over three years in complete, from December 2015 to December 2018. Throughout this time, Barclays processed a 3rd of all card fee transactions within the UK.
Earlier this 12 months, the PSR fined NatWest Group banks £1.82m for overcharging interchange charges on bank cards.
Says Hemsley: “The place we see banks failing to adjust to the Interchange Price Regulation, we have now powers to intervene to ensure these vital guidelines are adopted, so retailers could make knowledgeable choices in regards to the providers they use.”