英国のペイメントカード市場における規制の動向

Introduction

This brief provides in depth coverage of both national and international regulatory activity that has impacted on the UK card market. This briefing also forms part of the UK Plastic Cards 2008 report.

Scope

• The report covers all regulation in 2007 and the first half of 2008 that has affected the card market in the UK.
• Both national and international regulatory issues are considered.
• In the UK, issues such as default fees on payment cards, payment protection insurance and domestic interchange are discussed.

Highlights

The UK Office of Fair Trading concluded its investigation into default fees in 2006 but the investigation into overdraft fees applicable to current accounts may still have an impact on the outcome of its ruling regarding credit and store card default fees.

In December 2007, the EC ruled that MasterCard' s MIFs for cross-border payment card transactions with MasterCard and Maestro consumer debit and credit cards in the European Economic Area violate the EC Treaty rules on restrictive business practices. MasterCard has since filed an appeal with the European Court of First Instance to annul the ruling.

The investigations into payment protection insurance (PPI) and domestic interchange are continuing into 2008. However, the final report of the findings by the Competition Commission into the sale of PPI is expected to be published in December 2008.

Reasons to Purchase

• Gain a clear understanding of the regulatory developments in the UK market.
• Understand the impact of changes in regulation in the rest of Europe on UK issuers.
• Find out how issuers are adapting to changing market conditions.

• Overview
• Catalyst
• Summary
• Methodology
• Table of Contents
• Table of figures
• Table of tables
• Regulatory Developments in the UK Payment Card Market
• The UK card market continues to face regulatory intervention at the national level
• The Banking Code was revised in March 2008 following OFT' s call for greater information to be provided with credit card cheques
• The consultation on the issue of credit card cheques by relevant parties involved began in November 2005
• Datamonitor Cards and Payments Team view 7
• Store card providers have begun to reduce default fees but the OFT' s investigation into overdraft default fees may still have further implications for issuers 7
• Datamonitor Cards and Payments Team view 8
• The CCA 2006 has extended protection offered to consumers and was enacted in April 2008
• The focus of CCA concerns provision of information to consumers
• Datamonitor Cards and Payments Team view
• The Competition Commission published its provisional findings on the sale of payment protection insurance
• The investigation into PPI started when the OFT referred its report to the Competition Commission
• The FSA has been independently investigating the sale of PPI since 2005 and has imposed penalties on several players
• Datamonitor Cards and Payments Team view
• The Payment Systems Task Force was wound up in November 2006 and replaced with the UK Payments Council
• The work of the PSTF covered access and governance of the LINK ATM network
• The PSTF did not pursue its investigation into the access and governance of UK card schemes
• The OFT has vowed to continue its investigations into multilateral interchange fees but no progress has been made at the national level
• Background to interchange and its regulation
• Interchange is one of five key revenue streams for the industry
• Merchants are behind the downward pressure on interchange
• Interchange is a hugely important source of revenue for issuers in the UK
• The OFT' s current interest in domestic interchange began when MasterCard applied for an exemption from the UK Competition Act 1998
• In its September 2005 ruling, the OFT accepted the need for a collective agreement on interchange, but objects to what it sees as ' extraneous costs'
• In response to this finding, MasterCard, backed by the rest of the industry, lodged an appeal with the CAT
• Datamonitor Cards and Payments Team view
• The UK card market also continues to face regulatory intervention at the international level
• At the European level the EC came down against MasterCard' s intra-EEA multilateral interchange fees
• The EC also found that MIF might stand in the way of the creation of SEPA
• Understandably, MasterCard appealed the European ruling on interchange
• The European Commission also initiated formal proceedings against Visa Europe
• Visa is ready to negotiate a settlement with the EC regarding its cross-border MIF' s
• Datamonitor Cards and Payments Team view
• The European CCD promises to make further changes to regulation in the UK
• The changes that have been made to the calculation for the APR will see headline rates rise in the UK
• Timeline of the directive
• The revised proposal has seen changes to a number of key areas, but the commitment to maximum harmonization in some areas remains
• Other areas of the directive remain unchanged from its previous form
• Despite positive intentions there are key problems with the directive
• Datamonitor Cards and Payments Team view
• The European banking industry continues to work towards the creation of SEPA
• For a number of years the EC has pushed to create a single payments area
• Yet the threat of further regulation pushed the industry to take steps to self-regulate
• At the end of 2004, the EPC issued a roadmap to 2010
• However, there are signs that regulators are becoming frustrated with the slow progress of the banks in regards to SEPA
• In March 2006, the EPC published a second version of its Cards Framework
• After missing the original deadline, banks have agreed a new SEPA start date
• Datamonitor Cards and Payments Team view
• Appendix
• Definitions
• AAGR
• APACS
• Average transaction value
• Balances outstanding
• CAGR
• Charge card CAGR
• Credit card
• CVV
• Debit card
• EMV
• Fraudulent use of card details (card-not-present fraud), also known as fraud on phone, mail order or Internet transactions
• Interchange
• Non-standard
• OFT
• Methodology
• Primary research
• Secondary research
• Further Reading
• Ask the analyst
• Datamonitor Consulting
• Disclaimer

• Table 1: Current relevant Datamonitor publications, 2008
• Table 2: Future relevant Datamonitor publications, 2008

• Figure 1: Organization chart of the EPC, 2006