Interchange Fees: Enforcement Powers of the UK’s Payment Systems Regulator

The UK’s Payment Systems Regulator (‘PSR’) published final guidance on its approach as the competent authority in the UK for the Interchange Fee Regulation (‘IFR’) on 6 October 2016 (the ‘IFR Guidance’). The IFR Guidance details how the PSR will exercise its powers under the IFR, as well as guidance on penalties for non-compliance. The IFR Guidance also sets out the PSR’s approach to ensuring compliance with the IFR provisions capping interchange fees or equivalent issuer compensation, as well as the conduct of business rules. John Casanova and Abi Twist of Sidley Austin LLP discuss the IFR Guidance.