Abta members 'not experiencing card payments cost savings'

Abta revealed the findings after the Payment System Regulator (PRS) launched a market review this week into card-acquirer services following “concerns” voiced by the retail sector.

The regulator said it wanted to ensure the supply of card-acquiring services was “competitive” and worked “in the interests of merchants, and ultimately consumers”.

The PRS outlined its draft areas of investigation for the market review on Tuesday (July 26) and will keep its consultation open until September 14.

In a statement to TTG, Abta said it also believed “the majority” of its members were not experiencing cost savings in relation to taking card payments, adding that it welcomed the review.

“This [review] offers an excellent opportunity to push for enhanced regulatory oversight across the payment chains, and encourage a more competitive payments environment,” the association said.

Aspects being looked into during the review include considering “whether there are credible alternatives to card-acquiring services for some or all merchants”, as well as, “the outcomes of the competitive process including the fees merchants pay and the quality of service they receive”.

New consumer laws outlawing card surcharging were brought into force on January 13.

Under the EU Payment Services Directive (PSD2) credit and debit card surcharging was made illegal.

Upon announcing the review, Hannah Nixon, managing director of the PRS, said: “This is about making sure that payment systems work well for everyone, and we will look to make changes if we think improvements should be made.”

Abta will be consulting with members in August.