07:42 AM EDT, 05/21/2024 (MT Newswires) -- Mastercard ( MA ) and Visa (V) have increased their scheme and processing fees by over 30% in real terms in the last five years, but "there is little evidence that the quality of service has improved at the same rate," Britain's Payment Systems Regulator said on Tuesday.

The regulator said in its interim report that Mastercard ( MA ) and Visa "do not face effective competition," as they account for 95% of transactions using UK-issued cards so businesses do not have much choice while paying increased fees.

Mastercard ( MA ) and Visa have therefore become a target of scrutiny by the regulator, which provisionally found that the duo provides "complicated and unclear" pricing statements to card acquirers, who find it difficult to access information about fees and that there are "frequent delays and insufficient notice periods" while implementing fee changes.

The watchdog said it sets out potential remedies to ensure Mastercard ( MA ) and Visa "improve transparency around these costs and ensure acquirers and business are given clearer information about the services provided."

The regulator said it plans to publish its final report on scheme and processing fees in Q4.

Mastercard ( MA ) and Visa did not immediately respond to MT Newswires' request for comment.

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