Visa and Mastercard pushed back against U.K. regulators examining 2021 cross-border fee hikes, saying the increases were triggered by the U.K.’s exit from the European Union and are justified by key services provided, such as fraud protection.
The questions from members of parliament come as the card companies face related scrutiny from that country’s industry overseer, the Payment Systems Regulator, according to a Treasury Select Committee of parliament asking for answers on the issue.
“The Payment Systems Regulator (PSR) previously told the Committee it has not seen ‘evidence that shows that there have been significant changes in the costs’ for card issuers, that could justify the increase in fees,” according to a statement on the U.K. Parliament’s website. “The PSR also recently expressed concerns that these fee rises may demonstrate the market is ‘not working well’ and ‘could result in higher prices paid by UK merchants and consumers.’”
A EU interchange fee regulation that previously capped fees doesn’t apply now to cross-border fees following the U.K.’s 2020 Brexit move, the parliament statement said.
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