The Payment Systems Regulator (“PSR”) has confirmed new requirements on Mastercard and Visa to improve transparency and accountability around card scheme and processing fees. The measures follow the PSR’s market review into these fees and are designed to give UK businesses clearer information on the costs of accepting card payments, while strengthening governance around how the schemes set prices.
For acquirers, merchants and other firms involved in card payments, the directions mark a significant step towards addressing long-standing concerns about rising and opaque fees that ultimately feed through into the prices consumers pay.
Background to Card Fees
Card scheme and processing fees are charged by Mastercard and Visa to acquirers for participation in the schemes and for authorisation, clearing and settlement services. Some are mandatory (core); others are optional. These costs sit alongside interchange fees and the acquirer’s own margin as components of the overall merchant service charge.
Regulation of card fees in the UK has evolved over time. The EU Interchange Fee Regulation (“IFR”), which took effect in 2015 and was retained in UK law after Brexit, capped interchange fees on domestic consumer debit and credit card transactions (0.2% for debit, 0.3% for credit). The IFR also required functional separation of scheme and processing activities. While this addressed one major cost element, scheme and processing fees themselves remained largely unregulated on price.
Why the PSR Acted
In its earlier card-acquiring market review, the PSR identified significant increases in scheme fees paid by acquirers between 2014 and 2018. Subsequent stakeholder feedback and data showed continued rises. The PSR’s market review into card scheme and processing fees, culminating in its final report in March 2025, found that Mastercard and Visa increased their core scheme and processing fees to acquirers by at least 25% since 2017, costing UK businesses at least £170 million extra per year. The review also identified ineffective competitive constraints on the schemes and a lack of clear, detailed fee information that raised costs for acquirers and merchants and limited their ability to negotiate or shop around.
Following consultation on remedies, the PSR has now moved to implementation with two specific directions issued on 30 July 2026.
The New Requirements
The PSR has issued two directions:
- Information, Transparency and Complexity remedy: Mastercard and Visa must provide their acquirer clients with much clearer information about every fee charged on UK transactions, such as what the fee is, how it is triggered and how it is calculated. This is intended to make it easier for businesses to check bills, avoid unnecessary charges and compare optional services. Implementation will be phased over 12 months to allow for system changes.
- Pricing Governance remedy: The schemes must consider the interests of the businesses that rely on their services when making pricing decisions and maintain clear records of their reasoning. This addresses the finding that internal processes around pricing lacked transparency. The remedy takes effect within four months.
In addition, the PSR confirmed it is working on a third measure, Regulatory Financial Reporting, that will require Mastercard and Visa to report to the PSR on the financial performance of their UK card businesses. This will give the regulator better visibility of fee trends and profitability so it can act quickly if further intervention is needed.
What Firms Should Do Next
While the formal obligations fall primarily on Mastercard and Visa, the changes will have practical implications for acquirers and, indirectly, for merchants.
- Acquirers should prepare to receive and use the enhanced fee information. This includes reviewing internal processes for reconciling scheme bills, assessing optional services and ensuring that clearer data can be passed on or explained to merchant clients where relevant. Firms should also monitor how the schemes implement the pricing governance requirements and consider whether the new transparency supports better commercial discussions.
- Merchants and businesses that accept cards should engage with their acquirers to understand how the improved information will be reflected in statements and pricing discussions. Greater visibility of individual fee components may support more informed decisions about payment acceptance strategies and optional services.
All firms in the payments chain should track the forthcoming Regulatory Financial Reporting requirements, as these may shape the PSR’s future approach to oversight of scheme fees.
How Complyport Can Help
Complyport supports Payment Institutions, acquirers, Electronic Money Institutions and other firms involved in card payments in navigating regulatory change and strengthening their frameworks.
Our specialists can assist with:
- Assessing the impact of the new PSR directions on your commercial and operational arrangements with the schemes;
- Reviewing and enhancing processes for fee reconciliation, cost analysis and merchant communication;
- Advising on governance and documentation expectations that may arise from greater regulatory scrutiny of scheme pricing;
- Supporting readiness for any further PSR interventions, including financial reporting requirements; and
- Providing practical, proportionate advice on compliance and commercial implications tailored to your business model.
Whether your firm is benchmarking its framework against the FCA’s latest findings or preparing for future regulatory scrutiny, Complyport can provide practical, proportionate support tailored to your business.
Book a Meeting with a Complyport SME
To discuss how the PSR’s new directions may affect your business and how Complyport can help, contact us today to book a meeting with one of our Subject Matter Experts.
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