PSR Turns Microscope on UK Card Acquirers

Wednesday, September 19th, 2018

This summer, the Payments Systems Regulator (PSR) published draft terms of its review into card acquiring services. The purpose of this review of high street banks, who accept and process card payments on behalf of merchants for a fee, was to follow up on growing concerns.

The issue? Many felt that customers may not be getting the best deal. Considering the increasing use of cards to buy goods and services (it was the most frequently used payment method in 2017), these concerns are legitimate. The following information includes the top concerns shared by various stakeholders:

• Acquirers not passing on savings made from interchange fee caps to smaller merchants.
• A lack of transparency around the fees merchants pay to accept card payments.
• An imbalance in the fees card scheme operators charge to acquirers.
• Acquirers passing on a larger portion of scheme fees to merchants.

“The costs merchants incur for such services may ultimately be reflected in the prices they charge and services they offer to their customers,” the PSR said in a statement.

According to UK Finance, which represents the sector, acquiring fees are negotiated directly with the retailer. The outcome will depend on a number of factors, including: volume of transactions and business type. UK Finance says that, considering the vital role card payments play in the UK economy, it is understandable that the PSR would want to review the market. Card spending is equivalent to about a third of the UK’s GDP.

“The PSR is proposing to carry out this market review having taken into account the concerns that have been brought to its attention,” the firm explained.

“The regulator wants to ensure that the supply of card-acquiring services is competitive and works in the interests of merchants, and ultimately consumers.”

As of now, the public consultation on the terms of the review is still open (until September).

Where to Find the Best Merchant Providers

Finding efficient, secure payment processing options is a real challenge for merchants in the UK. Poor or no credit, for example, can prevent a merchant from finding a provider willing to work with them. Business startups and small businesses also have a hard time finding solutions.

When shopping for a merchant account provider, it is important to be able to compare your options. Not all payment processors are created equal. You need a provider that specializes in working with your industry and business type, and one that offers affordable, flexible solutions. If not, the costs will trickle down from your business and affect your customers.

So, where can you find merchant account services tailored to meet your business’ needs? Consider the many helpful tips and reviews available via Best Payment Providers. Even if credit is an issue for you, you can find instant approval merchant accounts with no credit check.

If you are one of the many UK merchants that has concerns over how card acquiring services are affecting your business – and ultimately customers – take advantage of the opportunity to compare providers before you choose. Make sure your payment processing services are competitive and have your best interests in mind.