The Payment Systems Regulator (PSR) has published its final terms of reference for a market review into the supply of card-acquiring services.

The review follows concerns that the market may not be working well for merchants and therefore consumers. The regulator published draft terms for this market review in July 2018, with the final terms of reference taking into account feedback the received during the consultation period, which ended in September.

The PSR explained that card payments are increasingly important, with debit cards becoming the most frequently used payment method in 2017. For businesses to accept card payments, they need to buy card-acquiring services – the cost of these may affect the prices and services offered to their customers.

The final terms of reference look at:

• the nature and characteristics of card-acquiring services;
• how merchants buy card-acquiring services;
• who provides card-acquiring services and how their market shares have developed historically;
• whether there are credible alternatives to card-acquiring services for some or all merchants;
• what the market is delivering for merchants and consumers, including the fees merchants pay and the quality of service they receive.

Chris Hemsley, head of policy at the PSR, said: “We want to make sure the card-acquiring market is working for businesses and ultimately consumers – if we find that the market is not working well, we will look to make changes.”

The PSR is aiming to publish an interim report by the end of 2019, presenting the analysis and preliminary conclusions for consultation. Following this, the PSR will publish a report containing the final findings of the review and any further action to be taken.

Share Story: