High Court Upholds PSR Powers to Cap Card Fees

Detected March 12th, 2026

Summary

The UK High Court has upheld the Payment Systems Regulator's (PSR) powers to cap cross-border interchange fees, following a legal challenge. This decision allows the PSR to proceed with its analysis and potential implementation of fee caps, aiming to reduce costs for UK businesses.

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What changed

The UK High Court has ruled in favor of the Payment Systems Regulator (PSR), affirming its authority to cap cross-border interchange fees charged on card payments. This decision stems from a legal challenge initiated after the PSR proposed imposing these caps, having identified the fees as excessively high and detrimental to UK businesses. The ruling solidifies the PSR's regulatory powers, enabling it to continue its assessment of appropriate fee levels and promote competition within the payment systems sector.

This judgment means the PSR can move forward with its work on setting fair interchange fee levels for outbound multilateral transactions. While the High Court's decision upholds the PSR's powers, the regulator has previously consulted on the methodology for determining the price cap. Businesses, particularly retailers and financial institutions involved in payment processing, should monitor the PSR's next steps regarding the implementation of any fee caps. The outcome of the prior consultation on the methodology will inform the regulator's final decisions, potentially leading to revised costs for cross-border card transactions.

What to do next

Monitor PSR's next steps regarding interchange fee cap implementation.
Review consultation outcome on methodology for developing a price cap remedy.

Source document (simplified)

The Payment Systems Regulator (PSR) has welcomed the High Court’s decision to uphold its powers to regulate payment systems, following a legal challenge to its ability to cap cross-border interchange fees.

The challenge was triggered as a result of the PSR’s proposal to impose a cap on cross-border interchange fees. The PSR had found these fees to be unduly high, at the expense of UK businesses. This ruling enables the PSR to continue with its analysis of what the appropriate level these fees should be.

The Court’s decision ensures that the PSR retains the necessary powers to regulate payment systems effectively, supporting competition, innovation and service user interests across the sector.

David Geale, Managing Director of the PSR, said:

“We welcome the High Court’s decision, which confirms our powers to ensure card payment costs are fair for UK businesses and consumers. This enables us to drive forward the work we have been doing to ensure cross-border interchange fees are set at an appropriate level.”

The PSR has consulted on the methodology for assessing an appropriate cap for outbound multilateral interchange fees and that the outcome of that consultation will inform the regulator’s next steps.