Mastercard Europe SA, R (On the Application Of) v Payment Systems Regulator [2026] EWHC 64 (Admin) (15 January 2026)

Mastercard Europe SA, R (On the Application Of) v Payment Systems Regulator [2026] EWHC 64 (Admin) (15 January 2026)

Section 54 of the Financial Services (Banking Reform) Act 2013 confers upon the Payment Systems Regulator the power to impose price caps on default Interchange Fees by means of a general direction. The statutory language, context, and regulatory objectives support a broad interpretation of the PSR's powers. Section 108 does not prohibit the exercise of this power in respect of Mastercard in the circumstances of these proceedings. The claims are not premature as the PSR has made a decision in principle to impose such caps.

Citation
[2026] EWHC 64 (Admin)
Parties
Claimant: Mastercard Europe SA; Defendant: Payment Systems Regulator; Interested Party: Visa Europe Limited; Claimant: Visa Europe Limited; Interested Party: Mastercard Europe SA; Claimant: Revolut Bank UAB
Jurisdiction
England and Wales
Judgment Date
15 January 2026
Procedural Posture
Judicial Review / Rolled Up Hearing (permission and Substantive Determination)
Outcome
Claims dismissed
Legal Topics
Statutory Interpretation, Regulatory Powers, Interchange Fees, Judicial Review, Ultra Vires, Payment Systems
Administrative Law Financial Regulation Competition Law Statutory Interpretation Regulatory Powers Interchange Fees Judicial Review Ultra Vires +1 more

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Parties

Mastercard Europe SA

Claimant

Payment Systems Regulator

Defendant

Visa Europe Limited

Interested Party

Visa Europe Limited

Claimant

Mastercard Europe SA

Interested Party

Revolut Bank UAB

Claimant

Procedural Posture

Judicial Review / Rolled Up Hearing (permission and Substantive Determination)

Legal Issues

  1. 1 Does section 54 of the Financial Services (Banking Reform) Act 2013 empower the Payment Systems Regulator to impose price caps on default Interchange Fees via general direction?
  2. 2 Does section 108 of FSBRA prohibit the exercise of such power in respect of Mastercard?
  3. 3 Are the claims premature given the absence of a final decision on cap levels?

Ratio Decidendi

Section 54 of the Financial Services (Banking Reform) Act 2013 confers upon the Payment Systems Regulator the power to impose price caps on default Interchange Fees by means of a general direction. The statutory language, context, and regulatory objectives support a broad interpretation of the PSR's powers. Section 108 does not prohibit the exercise of this power in respect of Mastercard in the circumstances of these proceedings. The claims are not premature as the PSR has made a decision in principle to impose such caps.

Court Disposition

Claims dismissed

Orders

  • Permission to apply for judicial review granted
  • Claims for judicial review dismissed