Barclays fined over card payment rules

BARCLAYS has been hit with an £8.4m fine after it was found to have broken card payment rules.

The high street lender was rebuked for failing to provide retailers with full information regarding the costs of its card services, leaving companies unable to shop around for better deals, according to the Payment Systems Regulator (PSR).

The watchdog said the FTSE 100 bank failed to provide adequate information required under so-called Interchange Fee Regulation, meaning retailers were unable to easily understand transaction fees associated with accepting certain types of card payments.

The PSR said: “When paying by card, retailers have to pay fees to accept the payment, and these fees can be passed on to consumers through higher prices.

“Barclays’ failure meant retailers weren’t fully aware of the fees they were paying so could not effectively compare prices of card services, shop around to find cheaper deals, or negotiate the best deal with Barclays – which could have ultimately saved them and their customers money.”

The watchdog’s investigation found that Barclays failed to comply with the rulebook from the end of 2015 to 2018.

The bank processed a third of all card payment transactions in the UK during the period, meaning “thousands of retailers and transactions were affected”, the PSR said.

Earlier this year, the PSR fined Natwest £1.82m for overcharging credit card fees.