The High Court in London confirmed that the UK Payments Systems Regulator (PSR) has the power to impose a price cap on cross‑border interchange fees for card‑not‑present transactions. The ruling, delivered on January 15, 2026, rejected the challenge mounted by Visa, Mastercard and Revolut, which argued that the cap would unfairly limit their revenue streams.
The PSR’s 2023 review found that interchange fees for online payments between the United Kingdom and the European Union had risen more than fivefold since Brexit, from 0.2% to 1.15% on debit cards and from 0.3% to 1.5% on credit cards. The regulator estimates that the increase has cost UK businesses an additional £150 million to £200 million per year. The court agreed that the PSR’s findings were sound and that the proposed cap was a legitimate regulatory tool.
While the article does not yet specify the exact percentage cap, the PSR has indicated that the limit will be set at a level that reflects the cost of processing cross‑border transactions and the value delivered to merchants and consumers. The decision is expected to be enforced shortly, with a timeline for implementation to be announced by the PSR.
Visa and Mastercard have both expressed concern that a cap would erode the value proposition of card payments. A Mastercard spokesperson said that “artificial controls on interchange do not reflect the commercial reality of today’s market and can negatively impact the value people and businesses receive from card payments.” Visa’s statement, reported by Reuters, echoed this view, noting that the cap could reduce interchange revenue that underpins the networks’ business model.
Revolut, which also challenged the cap, is likely to view the ruling as a positive development for its users, as lower interchange fees could translate into lower costs for merchants and consumers. The fintech’s participation underscores how regulatory changes can affect both legacy payment networks and newer entrants.
The ruling signals a broader trend of increased regulatory scrutiny over payment‑network pricing. By re‑introducing a cap on cross‑border fees, the UK is aligning its policy with the European Interchange Fee Regulation that had applied before Brexit. The decision may prompt other jurisdictions to consider similar measures, potentially reshaping the economics of cross‑border card payments across the UK and the EU.
For Visa and Mastercard, the cap could mean a measurable reduction in interchange revenue, prompting the companies to explore alternative revenue streams such as value‑added services and data analytics. The regulatory outcome also highlights the growing importance of cost‑control and pricing strategy in a market where merchants increasingly demand lower transaction costs.
Overall, the High Court’s ruling confirms the PSR’s authority to regulate interchange fees and sets the stage for a new era of pricing transparency and cost containment in the UK’s card‑payment ecosystem.
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