Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with (a) the Payment Systems Regulator and (b) representatives of the payments industry on merchant interchange fees.

The government is committed to ensuring a world-leading payments ecosystem that meets the needs of all businesses and consumers, as reflected in the National Payments Vision. This includes support for regulation of interchange fees. Government ministers and officials meet regularly with payments firms and their representatives on this and other issues. Details of ministerial meetings with external organisations are published on a quarterly basis and available on gov.uk.

Domestic interchange fees are capped at 0.2% for consumer debit cards and 0.3% for consumer credit cards. The Payment Systems Regulator (PSR) is responsible for enforcing these caps. The PSR is independent of the Government. However, the Government engages with them regularly on their important work, including on card fees.

The PSR has recently conducted a market review into cross-border interchange fees. These are fees charged when an EEA issued card is used to make a purchase from a UK merchant. It published its final report in December 2024 and is now considering its next steps.