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The Regulation Revolution: What Changed in July 2023?
In July 2023, a pivotal shift occurred in the UK payments landscape. The Payment Systems Regulator (PSR) introduced new regulations designed to enhance transparency and competition, significantly simplifying the process for merchants to switch card payment providers. These changes aim to reduce costs, streamline the switching process, and improve overall service quality for businesses. However, despite the potential benefits, a surprising 68% of merchants remain unaware of these new regulations.
What the new regulations means for merchants:
The new regulations are part of a broader effort to level the playing field in the payment services market. Key features include the introduction of summary boxes with essential pricing and non-pricing information, online quotation tools, and trigger messages that prompt merchants to explore their options when contracts are up for renewal. These measures are particularly beneficial for small and medium-sized enterprises (SMEs), as they lower the barriers to switching providers and make it easier for merchants to compare and select the most cost-effective and suitable payment solutions.
Why does it matter to merchants?
The implications of this regulatory change are significant. For many businesses, switching payment providers used to be a daunting task, often associated with hidden fees and complex terms. The new regulations simplify these procedures, offering merchants a clearer and more straightforward way to assess their payment solutions. This newfound simplicity allows businesses to concentrate on their core operations while ensuring that their payment systems are both cost-effective and reliable.
What should I do with this info?
If you're among the 68% of merchants who haven't yet explored the benefits of these regulatory changes, now is the time to take action. The easier switching process offers a prime opportunity to review your current payment provider and determine whether a better fit exists. Whether you're looking to reduce transaction fees, improve customer support, or access more advanced features, the new regulations provide the leverage you need to negotiate better terms and choose a provider that aligns with your business objectives. Don’t miss out on this chance to optimise your payment systems—your future self will thank you!