Following numerous complaints from retailers, the UK has launched an investigation into the card acquiring market. Indeed, soaring costs have been recorded since the EU imposed a cap on interchange fees. Although coming from a good intention, this cap has only moved the cost elsewhere, encouraging card issuers to increase fees. Consequently, this has an effect on consumer as merchants raise the cost of goods.
According to managing Director of the UK’s Payments System Regulator Hannah Nixon “we want to make sure that retailers that accept card payments can access card-acquiring services that are competitive, offer value for money and are innovative” to protect merchants and, consequently, consumers.
The market review is open for consultation until September 14th, 2018.