New British Regulator Taking A Close Look At Visa and MasterCard

Going forward in the U.K. Visa and Master Card will be directly overseen by the Payment Systems Regulator (PSR).

Starting next year, the PSR will be tasked with ensuring that the nation’s payments systems don’t stifle competition in the marketplace–which already is largely controlled by a handful of networks, processors and banks.

Economic Secretary to the Treasury Andrea Leadsom says because 92 percent of credit and charge card transactions, and 100 percent of debit card transactions in Britain, are made through Visa or MasterCard,  it makes sense to seem them so regulated, reports Finextra.

“An open and transparent payments system is crucial to give new players freedom to challenge the big banks without unfair barriers, and encourage new, innovative ways for customers to make payments,” she said. “Today’s consultation is an important step along the road to a more competitive banking sector focused on each and every user of financial services.”

Also under the scrutiny of the PSR will be  ‘Bacs, CHAPS, Faster Payments, Link and the check clearing system, are among the main ‘payment systems’ that the government is proposing to bring under the scope of the PSR from April next year.

The PSR was founded in 2013 to regulate the British payment market, the regulations effecting Visa and MasterCard will go into effect on April 1, 2015.