The High Court in London on 15 January 2026 ruled that the UK’s Payment Systems Regulator has the power to impose price caps on cross-border interchange fees, rejecting a legal challenge by Revolut, Visa and Mastercard.

The judgment clears the way for the PSR’s consultation on limiting fees applied when consumers in one country buy from merchants in another, particularly “card-not-present” online transactions. The PSR first proposed a cap in 2023 after finding interchange fees between the UK and the European Economic Area had risen more than fivefold since Brexit, from 0.2 per cent to 1.15 per cent for consumer debit cards and from 0.3 per cent to 1.5 per cent for consumer credit cards.

PSR managing director David Geale said the decision “confirms our powers to ensure card payment costs are fair for UK businesses and consumers.” He added: “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 regulator has previously estimated the post‑Brexit increases cost UK businesses an additional £150 million to £200 million a year, according to briefing material cited by the Financial Times. The PSR is determining the level and timing of the cap, with the market review continuing following the government’s restructuring that saw the PSR merged into the Financial Conduct Authority last year.

Chris Hemsley, then managing director at the PSR, said in December 2023: “In short, at this stage, we do not think this market is working well.” His comments accompanied the regulator’s provisional findings that fees charged to UK businesses accepting payments from within the EEA were likely too high.

Industry criticism has focused on the impact of price controls on payment economics. A Mastercard spokesperson told PYMNTS that “artificial controls” on interchange “do not reflect the commercial reality of today’s market and, if not set at the right level, can negatively impact the value people and businesses receive from card payments.” Visa has disputed the PSR’s findings, saying price caps can “negatively impact the value people and businesses receive,” according to Reuters.

The PSR has also highlighted other cost pressures, stating last March that scheme processing fees had risen by 25 per cent since 2017, adding around £170 million a year to business costs. Retailers argue a cap could ease margins, while banks and fintechs warn it may squeeze a meaningful revenue stream tied to payments rather than lending.

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