UK Payment Systems Regulator wins High Court ruling confirming its power to cap cross-border interchange fees

The UK Payment Systems Regulator (PSR) welcomed a High Court decision upholding its powers to regulate payment systems following a legal challenge to its ability to cap cross-border interchange fees. The judgment enables the PSR to continue its analysis of what an appropriate level for those fees should be. The challenge stemmed from the PSR’s proposal to impose a cap after it found cross-border interchange fees to be unduly high, at the expense of UK businesses. The ruling confirms the PSR retains the necessary powers to regulate payment systems, which it links to its wider remit to support competition, innovation and service user interests across the sector. The PSR has consulted on the methodology for assessing an appropriate cap for outbound multilateral interchange fees, and the outcome of that consultation will inform its next steps.