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Card scheme fees: what the new PSR rules mean for you

From 30 November 2026 Visa and Mastercard must justify and record how they set scheme fees, with clearer fee information to follow in 2027. Here is what the PSR's new rules mean for your card costs, what they don't do, and five checks to make now.

From 30 November 2026, Visa and Mastercard must follow new rules on how they set the scheme and processing fees built into every card payment your business takes. The rules come from the Payment Systems Regulator (PSR) and should make these fees clearer and better justified, but they do not cap fees or promise that you will pay less.

That matters because scheme fees are one of the least visible parts of your card bill. Here is what has changed, when it happens, and what you can do now to keep your own costs in check.

What are card scheme fees?

Each time a customer pays by card, three main costs sit behind the price you pay:

  • Interchange: paid to the customer's card-issuing bank. For most UK consumer cards this is capped by law.
  • Scheme and processing fees: charged by Visa and Mastercard to your payment provider (the "acquirer") for using their networks.
  • Your provider's margin: what your card machine company or acquirer adds on top.

If you pay one blended rate, you never see scheme fees as a separate line. They are folded into your rate. If you are on "interchange plus plus" pricing, they show up on your statement, often as a long list of small, technical charges. Either way, you pay them.

Why the regulator stepped in

The PSR's earlier review of card acquiring found that scheme fees paid by acquirers increased significantly between 2014 and 2018, and feedback since suggests they have kept rising. Its later market review of scheme and processing fees concluded that Visa and Mastercard face weak competition on these fees and that businesses lack clarity about what they will pay to accept cards.

In July 2026 the PSR published its final decision (policy statement PS26/1) and gave two directions to Visa and Mastercard, both in force from 30 July 2026.

What changes, and when

1. Pricing governance

Visa and Mastercard must "pay due regard" to the interests of the businesses that use their services when they set or change fees, and keep a signed written record explaining each relevant decision. These processes must be in place by 30 November 2026, and the PSR can ask to see the records.

2. Clearer fee information

The schemes must give acquirers clear details of each fee: what it is for, what triggers it and how it is calculated, so providers can match fees billed to the transactions behind them. The full information requirements apply from 30 July 2027. New or changed fees will need six months' notice, with the earliest such change landing in early 2028.

What the rules do not do

  • They do not cap scheme fees or stop increases.
  • Fees expected to raise less than £250,000 a year are largely outside the notice and record-keeping rules.
  • They apply to Visa and Mastercard, not directly to you or your provider.

The British Retail Consortium welcomed the extra visibility but was blunt about the limits: the directions "do not cap fees or guarantee lower costs".

A further remedy, on financial reporting by the schemes, is still being worked on. The Government also plans to fold the PSR into the Financial Conduct Authority. Legal commentators, including Bratby Law, note that this change does not alter the obligations on Visa and Mastercard.

What this means for your business

Nothing changes on your bill overnight. The new rules work at the level of the card schemes and acquirers. Better information goes to your provider first. Whether it reaches you depends on your provider and the terms of your contract.

Fee changes should become easier to see coming. Once the six-month notice period applies, providers should get earlier warning of new or changed scheme fees. That gives you a better chance to ask questions before a change hits your statement.

Small charges still add up. The Association of Convenience Stores has warned that, on tight margins and high volumes of low-value sales, even small fee increases quickly build up. Fees expected to raise less than £250,000 a year are largely outside the new notice rules, so if you are on interchange plus plus pricing, it is worth watching for new line items.

Flat-rate users are affected too. Flat-rate providers pay scheme fees as well. If their costs rise, they can change their rates under their own terms, usually with notice.

Five things to do now

  1. Find out how you are priced. Blended rate, flat rate, interchange plus or interchange plus plus? Your contract or online account will say.
  2. Work out your effective rate. Add up every card-related charge on your last three statements and divide by your total card takings over the same months. That single percentage is the figure to compare.
  3. List the extras. Terminal rental, PCI compliance fees, minimum monthly charges, authorisation fees and refund fees all count. Our guide to what your card statement actually charges you explains the common ones.
  4. Check your contract terms. Note the end date, any exit fees and how much notice your provider must give before changing prices.
  5. Ask your provider a direct question. How will they pass on the clearer scheme fee information they receive, and will they tell you in advance about scheme fee changes?

Frequently asked questions

Will the new PSR rules lower my card fees?

Not directly. The rules require Visa and Mastercard to justify and explain their fees, but they do not set a cap. Any saving would depend on how fees develop and how your provider prices your account.

Do I need to do anything to comply?

No. The directions apply to Visa and Mastercard. You do not need to change anything, but it is a good moment to review what you pay and the terms you are on.

When will I see clearer fee information on my statement?

The full information requirements on the schemes start on 30 July 2027. What you then see depends on your provider. Some already show scheme fees line by line; others include them in a single rate.

Get a clear view of your card costs

If you are not sure what you pay or whether your current deal still suits your business, we can help. Send us a recent statement and we will go through every charge with you and explain your options, with no obligation to switch.

Call or WhatsApp 07777 175890.

Jos Finserv Ltd (company no. 14560046) is an independent broker. For business finance we are a credit broker, not a lender, and we may receive commission from providers. Approval and terms depend on your trading history. No obligation.

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