Landmark Ruling Upholds Fee Cap Regulations
The UK High Court has delivered a decisive ruling, affirming the Payment Systems Regulator's (PSR) authority to impose caps on cross-border transaction fees. This decision rejects the legal challenge brought by digital bank Revolut and payment giants Visa and Mastercard.
Industry Context and Regulatory Debate
Since Brexit, international transaction fees charged by Visa and Mastercard have risen sharply, drawing widespread concern from fintech firms. Despite extensive lobbying efforts across Europe, the court upheld PSR's regulatory approach.
Legal Challenge and Judicial Response
In 2025, the companies launched a judicial review, arguing that PSR overstepped its authority and that the measures would harm market competition. However, the court ruled that PSR's actions were within its legal mandate.
Potential Impact on Global Payment Landscape
This decision could have far-reaching implications beyond the UK, potentially influencing cross-border transaction rules globally. Interestingly, the ruling follows closely after former US President Trump's recent call to cap credit card interest rates at 10%.
Industry Reactions and Next Steps
As of press time, Revolut, Visa, and Mastercard have not responded to requests for comment. The ruling is expected to prompt further adjustments in fee structures and competitive dynamics within the payments industry.