Revolut and Visa Challenge PSR’s Interchange Fee Caps

Revolut and Visa have filed legal challenges against the UK Payment Systems Regulator (PSR) over its decision to cap interchange fees on cross-border online payments. The PSR’s plan, announced late last year, aims to limit the fees Visa and Mastercard charge UK merchants when European shoppers make online purchases.

The regulator cited a fivefold increase in cross-border interchange fees post-Brexit, from 0.2% to 1.15% for debit cards and 0.3% to 1.5% for credit cards, costing businesses an extra £150-200 million annually.

Revolut has applied for a judicial review, stating, “We believe the PSR has acted beyond its statutory powers and request the court to overturn its decision.”

Visa emphasized its respect for the PSR’s role but argued that the legal action seeks clarity on the regulator’s authority and process to ensure fair industry growth.

The PSR plans to defend its decision robustly, according to sources. This follows the regulator’s recent announcement of action against Visa and Mastercard over domestic payment processing fee increases.