Four NatWest Group banks — National Westminster Bank, Royal Bank of Scotland, Ulster Bank and Coutts & Co. — were hit with fines totaling $1.9 million from the UK Payment Systems Regulator (PSR) for overcharging interchange fees on credit cards.
An investigation was launched four years ago after the issue was found during routine monitoring, the PSR said. Banks had erroneously charged numerous cards as being commercial when they were actually consumer cards and should have been subjected to a cap, the regulator said.
“The interchange fee caps were put in place to reduce the cost of accepting customer card payments for shops and other merchants’ businesses. The banks broke the rules by failing to bring themselves in line with the caps,” Chris Hemsley, Managing Director of the PSR, said in a press release on Thursday (May 12).
Hemsley added that as soon as the agency noticed the issue, it “stepped in to make sure the banks put a stop to it.” Fees were reimbursed to customers and fines were levied by the PSR.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI