On December 2, 2015, the Payment Systems Regulator published a consultation paper on the application of the Interchange Fee Regulation in the UK. The European Regulation which was published in the Official Journal of the European Union on May 19, 2015 is directly applicable in the UK. The Regulation introduces caps on interchange fees on debit and credit card transactions where the issuer and acquirer are both located in the EEA. The consultation, which will be conducted in two phases, seeks views on how the monitoring of compliance with the IFR provisions should be approached. The PSR has therefore published draft guidance alongside the consultation paper, setting out the proposed approach to the provisions of the IFR that come into force on December 9, 2015. The second phase of the consultation will follow in due course and will cover the remaining provisions that come into force on June 9, 2016. Comments on the consultation paper are due by January 29, 2016.

The consultation paper and draft guidelines are available at:

https://www.psr.org.uk/sites/default/files/media/PDF/CP%2015.3%20%20Application%20of%20IFR%20in%20UK.pdf and https://www.psr.org.uk/sites/default/files/media/PDF/GC%2015.2%20%20Guidance%20on%20PSR%E2%80%99s%20approach%20to%20IFR_0.pdf.