On May 19, 2016, the UK Payment Systems Regulator published a consultation paper on the application of provisions in the Interchange Fee Regulation, which take effect in the UK from June 9, 2016. The IFR sets a limit on interchange fees on debit and credit card transactions where both the issuer and acquirer are located in the European Economic Area and outlines a number of business rule provisions that require affected parties to amend their business practices. The consultation paper is Phase II of the PSR's consultation on the IFR; the previous Phase I paper outlined the PSR's powers and procedures as the designated competent authority for monitoring and compliance of the IFR provisions. The IFR came into effect on December 9, 2015. This consultation concerns the PSR's approach to the remaining IFR provisions which will come into effect on June 9, 2016, focusing on three areas: (i) business rules; (ii) monitoring and enforcement of the IFR business rules; and (iii) amendments to the Phase I Guidance. Responses to the consultation are due by July 8, 2016.
The consultation paper is available at: https://www.psr.org.uk/sites/default/files/media/PDF/CP163-IFR-Phase-2-draft- guidance-document.pdf and further information on Phase I Guidance is available at: http://finreg.shearman.com/ukpayment-systems-regulator-final-guidance-on-ap.
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