PSR issues final decision for main acquirers in UK relating to provision of information to merchant customers

On 06 October 2022, the Payment Systems Regulator (PSR) published its final decision on measures to improve card services for businesses by imposing specific information disclosure requirements on certain card acquirers in the UK. 

Who do the final remedies apply to?

The final remedies have been directed to 14 acquirers carrying on acquiring services in the UK, as listed on p. 75 of the PSR’s final decision. The PSR has the power to amend this list, so the decision could be applicable to other acquirers in the future.

What are the final remedies?

The final remedies comprise of the following:

• Summary boxes containing bespoke key price and non-price information to be sent individually to each business and shown prominently in their online account.  The summary box can be used alongside new online quotation tools to help businesses compare prices and other service features more efficiently.
• Online Quotation Tool using the information provided in the summary boxes to make comparisons with different providers online.
• Trigger messages to prompt businesses to shop around and/or switch. Messages will be sent by providers of card-acquiring services to businesses and shown prominently in their online accounts.
• A maximum duration of 18 months for Point of Sale (POS) terminal lease and rental contracts with a rolling monthly contract thereafter to prevent businesses from being locked into length contracts over several years.

What are the key dates?

As regards timings, the 14 acquirers will have to implement:

1. The remedy around POS terminal contracts from January 2023; and
2. The two remedies around trigger messages and summary boxes from July 2023.

How might this impact others?

• Under section 7 of the decision, the PSR has the ability to change and/or expand the list of acquirers to which these requirements apply at any time.
• The PSR will also review this direction at fixed periods of 3 years’ time and 5 years’ time respectively.
• Firms applying for FCA authorisation might need to consider this as part of their future compliance with UK regulatory requirements and “bake” this into their compliance policies and procedures.

Our Payment Services Regulatory team will be monitoring next steps and shall keep you up-to-speed with the latest developments.