Mastercard and Visa lost a significant legal challenge against the UK’s Payments System Regulator (PSR) in the High Court. The ruling affirms the PSR’s authority to impose caps on cross-border interchange fees. These fees apply when European consumers make online purchases from UK businesses.
The legal challenge followed PSR concerns that the fees had been raised to "unduly high" levels after Brexit. Judge John Cavanagh delivered the court’s decision, dismissing arguments from Mastercard, Visa, and Revolut that the regulator lacked the power to implement price caps.
This outcome represents a notable regulatory setback for the payment giants in the United Kingdom. The decision allows the PSR to move forward and ensure these specific interchange fees are set at an appropriate level. This development could reduce a key revenue stream from UK merchants selling to customers in the European Economic Area.
The PSR welcomed the decision, stating it confirms their powers to protect UK businesses and consumers from unfair costs. Mastercard has not commented on the ruling.