UK payments regulator back with card-acquiring services review
The UK’s Payment Systems Regulator (PSR) has published its final terms of reference for a market review into the supply of card-acquiring services.
It explains that card payments are an increasingly important payment method, with debit cards becoming the most frequently used payment method in 2017.
For businesses to accept card payments, they need to buy card-acquiring services. The cost of these may affect the prices and services they offer to their customers.
Chris Hemsley, head of policy at the Payment Systems Regulator, says: “We want to make sure the card-acquiring market is working for businesses and ultimately consumers. If we find that the market is not working well, we will look to make changes.”
The regulator published the draft terms of reference for this market review in July 2018.
The final terms of reference take into account the feedback received, explain what will be included in the review, and what the regulator will be considering along with its next steps.
The PSR is looking at the nature and characteristics of card-acquiring services; how merchants buy them; who provides them and how their market shares have developed historically.
In addition, it will examine whether there are credible alternatives; and what the market is delivering for merchants and consumers, including the fees paid and the quality of service.
The PSR is aiming to publish an interim report by the end of 2019.
Following this, it will publish a report containing the final findings of the review and any “further action to be taken”.
You can get more details and give feedback at the PSR’s website here.