British MPs plan to scrutinize increases in fees charged by Visa and Mastercard, as the country’s paying regulator found no evidence to justify the increases, a parliamentary committee said on Thursday.
Parliament’s Finance Committee Select Committee said that companies, which account for 99% of UK card transactions, had increased the system and the interbank fees paid by card issuers when using a card.
“Given that Visa and Mastercard currently dominate this area, it is vital to ensure that there is sufficient regulation and competition in the market so that businesses are not subject to ever-increasing service costs,” he said. , Mel Stride, according to Reuters.
Mastercard and Visa did not comment directly.
Businesses pay system fees to be part of a network of payment and interbank fees based on individual transactions. Increases in fees paid by merchants to card issuers are usually passed on to consumers, regulators said.
The UK Payment Systems Regulator (PSR) said in November that card services were not working well for smaller businesses.
In a letter on Thursday, she told Stride that she would propose “remedial measures” this month to address the program’s rising fees, which have doubled between 2014 and 2018.
“Our analysis shows that a significant proportion of these increases were not explained by changes in trading volume, value or mix,” the PSR said. “Our continued engagement with traders suggests that they have continued to grow significantly since then.
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Source From: Capital
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