UK Proposes Capping Some Visa, Mastercard Fees After Fivefold Jump Since Brexit
- Payment Systems Regulator says its concerned about competition
- Both companies say they disagree with the regulator’s findings
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Regulators in the UK are weighing a cap on some of the fees that Visa Inc. and Mastercard Inc. charge local merchants for each card transaction, seeking to rein in charges that have risen fivefold since Brexit.
After a monthslong review, the UK’s Payment Systems Regulator said it’s concerned that the payment giants have no effective competition, especially when it comes to the interchange fees they charge UK merchants when a consumer carrying a card issued by a bank in the European Economic Area makes an online purchase.