The Government has launched a consultation on the implementation of the EU Interchange Fee Regulation (IFR), the first provisions of which come into effect on 9 December 2015.

The Government is seeking views on:

  • The proposed steps to meet the UK’s obligation to put in place an adequate and efficient regulatory regime to supervise compliance with the IFR.
  • Exercising the national discretions the IFR affords to member states; namely the way in which member states apply and set caps to interchange fee rates.
  • Based on an assessment of market shares, the application of a time-limited exemption period of up to 3 years to three-party card systems that use issuers or acquirers.

The consultation will be of particular interest to stakeholders in the UK payments market including: banks, card schemes, merchant acquirers, business groups, consumer groups, and other interested parties.

Responses should be submitted by 28 August 2015 to ifrconsultation@hmtreasury.gsi.gov.uk.