An influential committee of UK MPs has written to Visa and Mastercard requesting a justification for current will increase in card transaction charges.
Whereas EU rules which capped these charges not apply, the Cost Methods Regulator (PSR) has advised the Committee it has not seen “proof that reveals that there have been important adjustments within the prices” for card issuers.
The watchdog has opened two market opinions into Visa and Mastercard scheme charges and cross-border interchange fees. In written testimony to the Committee, the PSR writes that it’s involved these price rises reveal the market is “not working effectively” and “might end in increased costs paid by UK retailers and shoppers”.
Commenting on the correspondence, Mel Stride MP, chair of the Treasury Committee, says: “Latest rises within the charges paid by companies for cross-border debit and bank card transactions add extra prices to companies, lots of whom are already grappling with rising inflation and different value pressures. That’s why now we have as we speak written to Visa and Mastercard to request an evidence for these price will increase.”