The new rules are intended to improve transparency around card scheme and processing fees
Following the Market Review and consultations, the Payment Systems Regulator (PSR) has introduced specific Directions on the card schemes to improve transparency on scheme and processing fees, and to strengthen how those fees are set.
The PSR has introduced two Specific Directions covering transparency and pricing governance. A third measure requiring enhanced regulatory financial reporting (RFR) is being developed separately, and we responded to the most recent consultation on this.
For retailers, the reforms should improve visibility of card acceptance costs and give acquirers better information to challenge fee increases. However, they do not cap fees or guarantee lower costs, which is something we have long called for and will continue to push for.
What has the PSR introduced?
On 30 July 2026, the PSR brought into force:
- Specific Direction 22 – Information, transparency and complexity
- Specific Direction 23 – Pricing governance
These directions apply to Mastercard and Visa.
Greater transparency over fees
Specific Direction 22 requires Mastercard and Visa to provide acquirers with clear, detailed information explaining:
- what each fee covers and what triggers it;
- how it is calculated;
- the applicable rates, currencies and pricing tiers;
- which transactions it applies to;
- whether it is mandatory, optional or behavioural; and
- what merchants or acquirers can do to avoid behavioural fees.
The objective is to ensure acquirers can understand, forecast and reconcile scheme fees.
These requirements take effect on 30 July 2027.
The rules also require schemes to give six months' notice of material new or amended fees (subject to a £250,000 materiality threshold), with the earliest qualifying changes taking effect from 30 January 2028.
Mastercard and Visa must also consult their acquirers on how they will comply with the new transparency requirements, providing an opportunity for acquirers to influence the format and usefulness of the information they receive.
Stronger pricing governance
Specific Direction 23 focuses on how Mastercard and Visa make pricing decisions.
Rather than introducing price controls, the PSR requires the schemes to have robust governance, controls and decision-making processes for significant fee changes from 30 November 2026.
When introducing relevant fees, the schemes must consider the impact on:
- competition;
- innovation; and
- payment system resilience.
They must also keep detailed records explaining the rationale for pricing decisions, expected financial impact and whether fee increases reflect underlying costs. These records must be retained for ten years and supplied to the PSR on request.
Regulatory financial reporting
The PSR is also developing a separate RFR regime requiring Mastercard and Visa to provide detailed financial information about their UK card businesses.
The aim is to improve the regulator's understanding of the schemes' profitability following concerns raised during its market review. The consultation closed on 3 July 2026, and the PSR will decide later whether to implement the regime.
What does this mean for retailers?
The new obligations apply to Mastercard and Visa rather than retailers.
The main benefit is likely to be greater transparency. Acquirers should be better equipped to understand, challenge and explain scheme fee increases, which could improve competition between acquiring providers and give retailers earlier notice of significant cost changes.
However, the reforms do not cap scheme fees or require savings to be passed on to merchants. Any reduction in costs will depend on how effectively acquirers use the new information.
Key dates
| Date | Milestone |
|---|---|
| 30 July 2026 | Directions 22 and 23 come into force |
| 30 October 2026 | Mastercard and Visa consult acquirers on compliance |
| 30 November 2026 | Pricing governance requirements take effect |
| 30 January 2027 | Schemes respond to acquirer feedback |
| 30 July 2027 | Transparency requirements apply |
| 30 January 2028 | Earliest six-month notice requirement for new fees takes effect |
What should retailers do?
Retailers should:
- discuss the new reporting with their acquiring providers;
- review current visibility of scheme and processing fees;
- monitor advance notifications of fee changes from 2027 onwards;
- engage through industry bodies where appropriate; and
- monitor developments to the proposed RFR regime.
Looking ahead
The PSR's reforms are intended to improve transparency and accountability rather than directly reduce card acceptance costs.
Whether retailers ultimately benefit will depend on whether better information enables acquirers to negotiate more effectively and compete more vigorously. The proposed RFR regime could also strengthen the PSR's ability to assess whether further intervention is needed if the new measures fail to improve competition.
