A London judge cleared the way for UK regulators to cap cross-border card fees, handing a legal defeat to Mastercard, Visa and Revolut in a closely watched challenge over the cost of online payments between the UK and Europe, Bloomberg reported.

The ruling keeps pressure on card schemes and fintechs over interchange charges on transactions where European consumers buy from UK merchants, even though the precise cap level and implementation timetable remain undecided.

Court Ruling on Payment Systems Regulator’s Powers

The dispute centred on the UK Payment Systems Regulator’s decision to consult on restoring a cap on cross-border interchange fees that applied when EU customers used cards to buy online from UK businesses.

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The PSR launched that consultation in December 2024 after warning that Mastercard and Visa had raised relevant fees to an “unduly high level” following Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, when earlier EU limits stopped covering many UK–EU transactions.

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Mastercard, Visa and Revolut took the case to London’s High Court, arguing the PSR did not have legal power to impose price caps on those fees.

They challenged the watchdog’s authority to set any ceiling and questioned whether it could proceed before finalising the level and timing of the proposed limits.

Judge Dismisses Challenge

Judge John Cavanagh rejected the companies’ arguments and ruled that the PSR does have the power to introduce the proposed price caps on cross-border interchange fees.

Mastercard, Visa and UK fintech Revolut lost a lawsuit with the UK payments regulator over its plans to usher in a cap on cross-border card fees. https://t.co/zqlr1msTSn

— Bloomberg (@business) January 15, 2026

The judgment allows the regulator to continue its work on the cap design without a legal block, although it still needs to decide the specific rate and when to bring it into force.

The PSR has previously said that recent fee increases left UK merchants facing higher costs when European customers shop online, which it views as unfair and harmful to competition.

PSR managing director David Geale welcomed the outcome, saying the decision confirms the regulator’s powers to ensure card payment costs are fair for UK businesses and consumers.

Industry Response and Broader Context

Visa had previously said it disputed the PSR’s findings and warned that price caps can negatively affect the value people and businesses get from card payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

Meanwhile, Visa and Mastercard proposed a $38 billion settlement in the US last year to end a legal battle stretching over two decades. It aimed at resolving claims that the companies colluded to charge merchants excessively high credit card “swipe fees.”

The offer came months after U.S. District Judge Margo Brodie rejected a previous $30 billion deal, calling it “paltry” compared with the fees Visa and Mastercard continue to collect from merchants.