- High Court clears way for possible cap on cross-border card charges
- Regulator says fees may have been pushed too high
- Exact level and timing of cap still unclear
Mastercard, Visa and British fintech Revolut have lost a legal challenge against Britain’s payments regulator over plans to potentially cap cross-border card fees, after the High Court ruled that the regulator does have the power to intervene.
The case centred on proposals by the Payments System Regulator, which said in December 2024 that it would consult on whether to limit fees charged when European consumers buy online from UK businesses. These fees, known as interchange fees, are paid by banks to card networks such as Mastercard and Visa for processing transactions.
The three companies argued that the regulator did not have the legal authority to impose price caps, especially when the level and start date of any cap had not yet been set.
Court gives regulator the green light
That argument was rejected by the High Court. Judge John Cavanagh ruled that the regulator does have the power to impose the proposed caps on interchange fees, clearing a major legal hurdle for the watchdog.
The regulator has previously said it was concerned that Mastercard and Visa had raised cross-border fees to what it described as an “unduly high level”, as quoted in a news report.
The challenge came at a time when the future of the regulator itself has been under discussion, after the UK government said last year, it planned to abolish the PSR as part of efforts to cut red tape and boost growth.
Industry pushback, regulator presses on
Mastercard declined to comment on the ruling. Visa and Revolut did not immediately respond to requests for comment.
Visa has previously said it disputes the regulator’s findings and warned that price caps could “negatively impact the value people and businesses receive” from card payments, according to earlier statements.
David Geale, managing director of the PSR, welcomed the decision, saying it “confirms our powers to ensure card payment costs are fair for UK businesses and consumers”, as quoted in a news report. He added that the ruling allows the regulator to continue its work on making sure cross-border interchange fees are set at an appropriate level.
While the judgment settles the question of authority, key details remain open. The regulator has yet to decide how high the cap would be, or when it might come into force, leaving businesses and payment firms watching closely for the next move.
