LONDON, Jan 15 (Reuters) - Mastercard, Visa and British fintech Revolut on Thursday lost a legal challenge to Britain's payments regulator over its plans to introduce a cap on cross-border card fees.
Mastercard, Visa, and Revolut Face Legal Setback on Cross-Border Fees
Legal Challenge Over Cross-Border Card Fees
LONDON, Jan 15 (Reuters) - Mastercard, Visa and British fintech Revolut on Thursday lost a legal challenge to Britain's payments regulator over its plans to introduce a cap on cross-border card fees.
Background of the Case
The three companies brought a case at London's High Court after the Payments System Regulator (PSR) said in December 2024 that it would consult on whether to introduce a cap on fees charged when European consumers buy online from UK businesses.
Court Ruling and Implications
The PSR – which Britain said last year it would abolish to cut red tape in favour of growth – had previously set out concerns that Mastercard and Visa had raised fees to an "unduly high level".
Reactions from Companies
Mastercard, Visa and Revolut argued that the PSR did not have the power to impose price caps, the level and timing of which have not yet been decided.
Judge John Cavanagh, however, rejected the challenge and ruled that the PSR does have the power to impose its proposed price caps on interchange fees.
Mastercard declined to comment. Visa and Revolut did not immediately respond to a request for comment.
Visa previously said it disputed the PSR's findings and said price caps can "negatively impact the value people and businesses receive" from card payments.
PSR managing director David Geale welcomed the decision which he said "confirms our powers to ensure card payment costs are fair for UK businesses and consumers".
"This enables us to drive forward the work we have been doing to ensure cross-border interchange fees are set at an appropriate level," he added.
(Reporting by Sam Tobin; Editing by Catarina Demony)
