Mastercard, Visa, and British fintech Revolut lost their High Court challenge against the UK’s Payments System Regulator. Judge John Cavanagh ruled the PSR has the authority to impose caps on cross-border card fees. The regulator had proposed consulting on limits for fees charged when European consumers buy from UK businesses.

The PSR had previously warned that Mastercard and Visa increased fees to an "unduly high level." This legal defeat strengthens the regulator's hand, though the final level and timing of any caps remain undecided. Visa had argued such restrictions could reduce the value of card payments for consumers and businesses.

The ruling arrives amid a broader UK government push to reduce regulatory burdens for economic growth. The government announced last year it plans to abolish the PSR entirely. For now, the regulator can proceed with its consultation, setting the stage for a new fee structure that could impact both merchants and cardholders.