The UK’s Payment Systems Regulator (PSR) has outlined a new set of measures designed to improve transparency and strengthen governance across card scheme and processing fees, following concerns that businesses lack clarity over the true cost of accepting card payments.
The proposals come after a market review which found that Mastercard and Visa face limited competitive pressure, alongside rising fees and insufficient transparency for merchants and acquirers.
Card payments continue to play a central role in the UK economy, supporting everyday transactions for consumers and underpinning revenue flows for businesses of all sizes. However, the PSR said its review highlighted structural weaknesses in the way fees are set and communicated, creating challenges for businesses trying to understand, forecast, and manage their payment costs. As a result, the regulator is seeking to intervene with targeted remedies aimed at improving market outcomes.
At the centre of the proposals is a new Information Transparency and Complexity requirement. Under this measure, card schemes will be expected to provide acquirers with clearer, more actionable pricing information. The intention is to enable acquirers to better assess fee structures and make informed choices, which should in turn support improved outcomes for merchants. The PSR believes greater transparency will help reduce complexity in card pricing and introduce stronger competitive dynamics over time.
Alongside this, the regulator is proposing new standards around pricing governance. These standards are intended to ensure that decisions on card fees are evidence-based and subject to more robust internal controls. By strengthening governance expectations, the PSR aims to increase confidence—both within the regulator and across the wider market—in how fees are determined and adjusted.
The PSR is also developing additional regulatory financial reporting requirements to give it deeper insight into the financial performance and profitability of card schemes operating in the UK. Enhanced data access will allow the regulator to monitor trends more effectively and assess whether pricing outcomes remain fair and proportionate. A separate consultation on the detail of these reporting requirements is expected to be published in spring 2026.
Taken together, the PSR said these measures are designed to deliver tangible benefits across the payments ecosystem. By improving information flows and governance standards, acquirers and merchants should be better equipped to understand costs and make more informed commercial decisions, while the regulator gains stronger tools to oversee the market and support innovation.
David Geale, managing director at the PSR, said, “We are delivering on our commitment to make the card payments market work better for all. Greater transparency will equip acquirers and merchants with the information and confidence they need to navigate fees and make better decisions. Improved governance will help the PSR gather the information it needs to take decisions that foster a competitive and innovative payments market. These steps mark real progress that will benefit merchants, consumers, businesses, and the wider economy.”
The PSR is now consulting on the draft directions required to implement these remedies. Once feedback has been reviewed, the regulator will move to finalise and introduce the changes, alongside its forthcoming proposals on financial reporting.
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