Visa and Mastercard Face Calls for More Transparency in UK

Core Viewpoint - The U.K. Payment Systems Regulator (PSR) is proposing increased transparency from Visa and Mastercard, which dominate the British credit card market, following a review that revealed a 30% fee increase over five years without improved service quality [1][2]. Group 1: Regulatory Actions - The PSR plans to require Visa and Mastercard to routinely provide financial information and consult with retailers before fee changes [1]. - The regulator's review indicates that competition is not effectively protecting businesses, leading to a provisional conclusion that the market is not functioning well [1]. Group 2: Company Responses - Mastercard disagrees with the PSR's findings, arguing that the analysis overlooks the significant investments made to secure networks against fraud [2]. - Mastercard emphasizes its commitment to providing secure and convenient payment solutions while maintaining transparency with the PSR [2]. Group 3: Legislative Context - In the U.S., Visa and Mastercard are facing increased regulation, with the Credit Card Competition Act (CCCA) requiring banks to allow card payments to be routed over competing networks [3]. - Proponents of the CCCA argue it would provide merchants with more options and potentially lower fees, while opponents claim it may not lead to consumer savings and could create confusion at the point of sale [3].