PSR has opened a consultation into changes to its guidance on the Interchange Fee Regulation (IFR) as a result of Brexit and changes to the regulatory framework.
Following Brexit, the IFR is now retained EU law, which applies in the UK as amended by the Interchange Fee (Amendment) (EU Exit) Regulations 2019 (the UK IFR). Consumer cross-border card payments between the UK and EU (or any other third country), where either the acquirer or issuer is based outside the UK’s jurisdiction, are no longer subject to the interchange fee caps established under either UK IFR or EU IFR.
PSR is now proposing changes to its IFR guidance including:
- the conversion of EU legislation into domestic legislation;
- amendments to ensure the legislation operated effectively after Brexit, referred to as ‘onshoring’; and
- a small number of changes to the regulatory framework.
The consultation remains open for comment until 5pm on Friday 21 May 2021.