Visa and Mastercard lost a significant legal challenge in London against the UK's Payment Systems Regulator (PSR). The lawsuit contested the PSR's authority to cap cross-border card fees.
The payment giants sought to prevent the regulator from re-imposing a cap on interchange fees. These fees apply to online purchases made by European consumers from UK businesses. The original fee cap had been lifted following Brexit.
A High Court judge ruled that the PSR does possess the power to impose the proposed price caps, rejecting the companies' arguments. This decision represents a setback for Visa, potentially leading to reduced revenue from these transaction fees.
The PSR previously stated concerns that the fees had been raised to an "unduly high level." This increase occurred since the UK withdrew from the European Union.