UK Payments Supervisor PSR to Review Card ServicesAdmin@ | August 24, 2018 | 0 | Finance
United Kingdom’s payments supervisory body will assess banks that process card transactions for retailers following concerns that their customers may not be enjoying the best deals and secure trading.
The Payments Systems Regulator (PSR) drafted terms of its assessment into card acquisition services by big banks who take and process card payments for merchants for a small fee.
Commenting on the impact of these extra costs, the Payments Systems Regulator said that paying transaction fees may push merchants to raise product and service prices for their customers in a move to balance the equation. In other words, a retailer may increase item or service prices so that a buyer pays the transaction fee when he or she makes a purchase or pays for a service.
UK Finance is one of biggest players in the sector. They agree that card processing is vital to UK’s economy and support PSR’s plan to review the industry.
According to UK Finance, the retailer does not take part in direct negotiations as regards to the acquirer fees, rather, the service provider decides on the rate based on factors like the nature of business and number of transactions.
“Card payments are vital to UK’s economy because card spending accounts for almost a third of the country’s GDP,” said UK Finance. “It is therefore understandable that the PSR wants to look into such a significant market. We will respond to the matter in due course.”
Remember, the Payments Systems Regulator has the authority to revise the sector’s practices if it finds harmful to customers. And they feel they should work on the current structure given that card payments became the most frequent form of payment in 2017.
“The Payment Systems Regulator’s proposal to conduct this market review is influenced by the concerns that have been brought to our table,” said the supervisory body. “We only want to see to it that the delivery of card-acquiring services stays competitive and works in for both merchants, and consumers.”
Find out everything else you need to know on the terms of this review, consultation is open until September.
Author bio: Payment industry expert Taylor Cole is a passionate secure trading expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry has helped thousands of business owners save money and time.