The financial heavyweights launched a legal challenge against the Payment Systems Regulator (PSR), arguing that the watchdog lacked the authority to cap the fees charged to UK merchants when European shoppers make online purchases. Judge John Cavanagh rejected this argument, ruling that the PSR does indeed have the power to impose price limits.

The regulator’s intervention follows a significant hike in costs post-Brexit. According to the PSR, Mastercard and Visa raised cross-border interchange fees fivefold between 2021 and 2022, causing UK businesses to face an estimated £150-200 million in additional annual costs.

David Geale, managing director of the PSR, said: “We welcome the High Court’s decision, which confirms our powers to ensure card payment costs are fair for UK businesses and consumers. This enables us to drive forward the work we have been doing to ensure cross-border interchange fees are set at an appropriate level.”

While the card firms and Revolut have yet to comment, the ruling signals potential financial shifts within the sector. The PSR is now consulting on the methodology to finalise the new fee caps.