Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) are under scrutiny by U.K. regulators contemplating a cap on some fees charged to local merchants per card transaction.
This regulatory consideration aims to control the costs that have significantly increased since Brexit, up to five times the original amount.
The U.K.'s Payment Systems Regulator (PSR) expressed concerns about the lack of effective competition in the interchange fees charged by Visa and Mastercard, especially for online purchases made with cards issued within the European Economic Area (EEA), Bloomberg reports.
The PSR proposes reverting these fees to pre-Brexit levels, which were 0.3% of the purchase price for credit cards and 0.2% for debit cards.
Currently, fees for credit cards ...