PSR publishes card-acquiring services report

The PSR has published its final market review into the supply of card-acquiring services. The report concludes that the supply of card-acquiring services does not work well for SME merchants and large merchants with annual card turnover up to £50m.

The report finds three main features that restrict the ability of merchants to search and switch:

• difficulty in getting prices and approaches to headline rates from acquirers and ISOs such that it is hard to compare prices for them and for payment facilitators;
• lack of a clear review trigger in agreements which are of indefinite duration; and
• costs and practical difficulties if a merchant needs a new POS terminal if switching.

PSR will publish a remedies consultation in early 2022.