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U.S. President Donald Trump. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] Regulatory efforts to curb card payment fees in the UK are gaining legal backing, highlighting a growing global policy focus on transaction costs. While the UK moves to directly regulate card fees, South Korea manages fees through disclosure and oversight measures, and the U.S. faces political and financial tensions over card fees and credit interest rates amid rising living costs.
In the UK, a London court recently ruled in favor of the Payment Systems Regulator (PSR) in a lawsuit brought by Mastercard, Visa, and fintech firm Revolut. The court found that post-Brexit cross-border fee increases imposed by card companies unfairly burden UK businesses and consumers. The ruling clears the way for the UK government and regulators to intervene directly in fee setting by banks and card networks.
South Korea is also actively managing card fees. Financial authorities have expanded disclosure obligations for electronic payment providers, covering credit and prepaid card fees. By making fee information publicly available, regulators aim to promote market competition. Recent disclosures indicate modest fee reductions. Authorities view card fees not merely as private service charges, but as policy-relevant factors directly affecting small businesses and consumers.
In the U.S., the debate has expanded to include calls to cap credit card interest rates. Former President Donald Trump publicly proposed a one-year limit of 10% on credit card rates, framing card fees and interest rates as major contributors to living cost pressures. Trump cited rising credit card debt as a key barrier to accumulating down payments for housing. Banks, however, have warned that rate caps could reduce credit access for vulnerable consumers, creating tensions with policymakers.
As concerns over transaction costs increasingly intersect with inflation control and consumer protection, governments and regulators worldwide appear set to play a more active role in shaping payment fee policies.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
