On 27 July 2015, HM Treasury announced a consultation on the government’s proposed steps to ensure the UK’s compliance with the Interchange Fee Regulation (IFR).

Interchange fees are the charges paid by businesses or retailers when a customer pays for a product using their debit or credit card.  The key objective of the IFR is to place a cap on these fees at 0.3% and 0.2% for credit and debit card transactions, respectively.  The IFR requires member states to designate a competent authority to supervise the IFR.  It is the UK government’s intention to designate the Payment Systems Regulator (PSR) for this purpose given its expertise and oversight of the UK payments market.

What this means for you

The consultation is of relevance to all stakeholders in the payments market that have an interest in the design of the UK regulatory regime for the supervision of the IFR.