UK lawmakers tell Visa and Mastercard to justify fee rises

• The Payment Systems Regulator (PSR) informed the Treasury Committee last week that the market was “not working well”.
• The corporations were allegedly increasing interchange costs paid by businesses to card issuers when a card is used.
• Legislators in Britain have already examined fee increases.

Following concerns from the nation’s payments authority, a committee in the British parliament has ordered payment companies Visa and Mastercard to explain recent increases in credit card transaction fees.

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According to communication made public by the committee on Thursday, the Payment Systems Regulator (PSR) informed the Treasury Committee last week that the market was “not working well” as seen by the rise in card costs.

Legislators in Britain have already examined fee increases.

The corporations, whose networks account for 99 percent of card transactions in Britain, were allegedly increasing the programme and interchange costs paid by businesses to card issuers when a card is used, according to a previous report by the Parliament’s Treasury Select Committee.

The committee’s chair, Mel Stride, had stated in a statement that “given that Visa and Mastercard now dominate this field, it’s crucial to ensure that there is sufficient regulation and competition in the market so that businesses are not exposed to ever-increasing servicing charges.”

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