Card Payment Fees Raise Cost Hike Fears
Some agency members have been told that charges for the processing of debit cards, now more usually a small fixed fee per transaction, are to change to a percentage basis.
The change could result in a big increase in the amounts paid.
The issue arises at a time when a new regulatory regime for the payment systems industry is on the near horizon. In April this year the newly formed Payment Systems Regulator will become a fully operational organisation. A subsidiary of the Financial Conduct Authority, the new regulator has lofty ambitions:
- To promote effective competition
- To promote the development of innovation
- To ensure that payment systems are operated and developed in a way that considers and promotes the interests of service users.
We don’t yet know how the regulator will respond to complaints that the payment processors are abusing their near-monopoly positions.