Ax the Card Tax Campaign, representing 240,000 businesses, will launch a brochure on Friday 9 December urging governments and regulators to level the playing field in payments and boost innovation in UK fintech I was.
of card tax ax The campaign aims to restore balance in the payments market. In the current market, the high cost of card payments makes it difficult for fintech start-ups to compete. Open banking has fostered innovation in the field, but campaign leaders have highlighted a lack of attention to the fee structure of card payments, which could seriously hamper growth.
The industry groups running the campaign include: Digital Economy Union (codec), Small Business Federation, UK retail consortium (BRC), convenience store association, Federation of Independent Retailers and the charitable retail association.
The average cost of card payments to retailers is as high as 0.7% for all card payments. The campaign explains that this could mean UK businesses paying 5 billion in card taxes a year.
visa When master Card It accounts for the majority of the card payment market. As card payments become more and more popular, major card companies have come to dominate the payments market. Small businesses have little to no choice but to accept the fees set by those companies.
These charges are steadily increasing. Schemes and processing fees charged by card giants are estimated to have increased by up to 600% since 2014.
call for reform
The campaign has a plan to increase the likelihood of payment and asks for:
- The Payment Systems Regulator (PSR) will freeze all transaction fees until the PSR’s investigation of the payments sector is completed.
- The PSR will reverse the 400% rise in post-Brexit cross-border interchange fees introduced in early 2022 by major card schemes.
- The Treasury will launch its own review of the costs of accepting card payments in the UK.
- Regulation of alternative providers and setting up open banking to ensure certainty and transparency for retailers wishing to offer alternatives to card payments.

Charlie MercerCoadec’s Head of Economic Policy, commented: However, only card payments are actually benefiting.
Cards have a role, but they are not the only payment method. High card transaction fees force banks to maintain the status quo. Adoption of payment innovations like open banking always faces a difficult challenge. However, the situation remains unchanged.
‘Regulation failed’
Charlie Mercer also spoke of the need for reform. he said: While prices have risen across the board, governments are laying down the cost of card payments, leading to higher fees. The UK’s thriving fintech sector can challenge the closed shops of the payments market. But it can’t be done without help. “
Abolishing the card tax will save UK businesses money, help them fight the costs of dealing with the business crisis and unlock payments innovation in the UK.

Hannah ReganThe BRC’s monetary policy adviser also explained the need for change.
As Regan explains: Retailers are really seeing the impact of these continued increases as fees continue to rise year after year.
While UK consumer behavior relies heavily on card use, the development of alternative payment methods will drive innovation and bring more competition to the market, benefiting both customers and merchants.