On 30 July 2026, the Payment Systems Regulator (PSR) gave Mastercard and Visa two formal directions on the scheme and processing fees they charge to card acquirers in the UK (PSR announcement).

Why the PSR acted

Scheme and processing fees are what the card schemes charge acquirers for their services. They form part of the charge a business pays to accept cards. In its March 2025 market review, the PSR concluded that Mastercard and Visa had increased their core scheme and processing fees to acquirers by at least 25% since 2017, costing businesses at least £170 million extra a year (PSR MR22/1.10). It also found that the schemes do not give acquirers sufficiently clear and detailed information about their fees (PSR PS26/1, para 1.1).

What the directions require

  • Clearer fee information. Under the "information, transparency and complexity" direction, the schemes must give acquirers better information to help them understand and reconcile their fees. The PSR expects acquirers to be able to pass this on to merchants through their contracts. The schemes must comply from July 2027 (PS26/1, paras 1.3 and 1.13).
  • Pricing governance. The schemes must improve their governance and record-keeping for UK pricing decisions on fees charged to acquirers (Specific Direction 23), so that relevant fee decisions are compliant from November 2026 (PS26/1, para 1.12).

Some elements apply only to fees above a materiality threshold, which the PSR set at £250,000 of annual gross revenue (PS26/1, para 1.8).

Separately, in May 2026 the PSR said it would implement a third remedy, regulatory financial reporting, and consulted on a draft direction until 3 July 2026 (PSR CP26/1). This would require the schemes to report on the financial performance of their UK card business to the regulator.

David Geale, the PSR's managing director, said the measures "will improve transparency around card scheme and processing fees, make it easier for acquirers to reconcile charges, and strengthen accountability for Mastercard and Visa's pricing decisions" (PSR announcement).

What it means for a small business

These directions do not cap scheme fees or reduce them directly, and they apply to the schemes, not to your card provider. The likely benefit is indirect: clearer information should make it easier for providers to bill accurately and for businesses to understand optional services and avoidable fees (PS26/1, para 1.11).

In the meantime, the most useful thing you can do is check what you are actually paying. Our guide to reading your card machine statement explains how to work out your effective rate, or you can upload a statement for a free comparison.