Payment Systems Regulator publishes final guidance on Interchange Fee Regulation
The Payments Systems Regulator (PSR) has today published its final guidance on how it will monitor and enforce the Interchange Fee Regulation (IFR).
The IFR is EU legislation that took effect on 08 June 2015 and brought major changes to the way card payment systems operate in Europe. Most notably, since 09 December 2015, it caps the interchange costs passed on to merchants processing card payments, therefore giving more certainty around interchange fees.
The IFR provisions came into force in two broad phases. The Phase 1 provisions were in force by 9 December 2015. The Phase 2 provisions came into force on 9 June 2016.
Today's guidance consolidates the final guidance for Phase 1, published in March 2016, with the final Phase 2 guidance following consultation earlier this year. The consolidated guidance sets out how the PSR will monitor compliance with all provisions of the IFR.
The guidance clarifies the PSR's position on the following:
· to whom the IFR applies
· interchange fee caps and how we will consider who may be exempt
· co-badging and choice of payment brand or payment application
· separation of payment card scheme and processing entities
· rules around the 'honouring' of all cards
· our approach to monitoring compliance with the IFR
· gathering initial compliance reports from relevant parties
· investigating complaints about non-compliance with the IFR
· our powers and procedures under the IFR
· penalties under the IFR
In addition, the PSR has today also published a Policy Statement which summarises the main points raised from responses to our Phase 2 consultation.
The six card schemes to which the IFR applies and which operate in the UK are: MasterCard, Visa, American Express, Diners Club International, JCB International and UnionPay International.
For more information about the Payment Systems Regulator, visit its website here.
· David Stewart - PSR Press Office - 020 7066 3142 / 07971 182 813
This information is provided by RNS