PSR Plans Card Fees, Fraud, and Payments Reform for 2026/27

Detected March 26th, 2026

Summary

The UK's Payment Systems Regulator (PSR) has outlined its 2026/27 work programme, focusing on reducing high card fees, enhancing APP fraud protections, and fostering innovation in payments. Key initiatives include implementing remedies for weak competition in card fees and continuing efforts against Authorised Push Payment fraud.

View original document View source feed page

What changed

The Payment Systems Regulator (PSR) has published its annual plan for 2026/27, detailing its strategic priorities. These include taking action on card fees by addressing cross-border interchange fees and domestic scheme/processing fees due to weak competition. The PSR will also continue its work to combat Authorised Push Payment (APP) fraud, including evaluating mandatory reimbursement and monitoring firm compliance. Other key areas include overseeing critical payments infrastructure, supporting open banking, strengthening supervision and enforcement in alignment with the FCA, and managing consolidation planning.

Regulated entities, particularly those involved in card schemes, payment processing, and APP fraud prevention, should review the PSR's planned activities. While this document outlines future work and does not impose immediate new obligations, it signals significant regulatory focus on these areas. Firms should anticipate potential new remedies or strengthened requirements related to card fees and APP fraud. The consolidation of the PSR into the FCA is also noted, with assurances of continuity and clarity for regulated entities. Compliance officers should prepare for potential changes stemming from these initiatives in the upcoming fiscal year.

What to do next

Review PSR's 2026/27 work programme for potential impacts on card fee structures and APP fraud mitigation strategies.
Prepare for potential new remedies or strengthened requirements related to card fees and APP fraud.
Monitor developments regarding the consolidation of the PSR into the FCA and its implications for payment systems regulation.

Source document (simplified)

The Payment Systems Regulator has today set out its work programme for 2026/27 highlighting its focus on tackling high card fees, maintaining world-leading protections against Authorised Push Payment (APP) fraud and supporting innovation and competition across UK payments.

This year’s work plan sets out how the regulator will build on recent reforms, take forward further action where markets aren’t working well for people and businesses and support the delivery of the National Payments Vision alongside the Bank of England, FCA and HM Treasury.

The annual plan sets out the organisation’s key aims, activities and costs for 2026/27.

In the year ahead, the PSR will focus on:

Taking action on card fees, including next steps on cross border interchange fees and implementing remedies on domestic scheme and processing fees to address weak competition.
Continuing action to tackle APP fraud, including publishing and responding to the independent evaluation of the first year of mandatory reimbursement and monitoring how firms are meeting the standards expected of them.
Overseeing the delivery of critical payments infrastructure, working closely with the Bank of England, HM Treasury and the Financial Conduct Authority (FCA) through the Payments Vision Delivery Committee.
Supporting the next phases of open banking, including work to establish a long term regulatory framework and future oversight arrangements.
Strengthening supervision and enforcement, aligning approaches with the FCA to support effective oversight.
Delivering consolidation planning that manages impact and provides clarity and certainty for regulated entities, enabling them to continue operating with confidence. David Geale, Managing Director of the Payment Systems Regulator, said: “In the year ahead, we will focus on tackling APP fraud, taking action on card fees, driving the next phase of open banking and overseeing critical payments infrastructure. In a time of change as the PSR is consolidated into the FCA, our role is to provide continuity, clarity and confidence, and we’ve set out how we will protect those reliant on payments services while supporting competition and innovation.”

Ashley Alder, Chair of the PSR, said:
“This year’s focus demonstrates the PSR’s continued commitment to promoting competition and innovation, while providing certainty for firms, consumers and businesses as we prepare for future regulatory changes.”