A preliminary ruling by the Office of Fair Trading made earlier this month proposed to enact potential changes to existing interchange fees that can amount to approximately 1% of overall cash yield, explained Fitch Ratings. While it looks as though U.K. interchange fees are likely to drop, market sources say it should be of little consequence to credit card securitizations.

This latest push to cut fees stems back to the earlier Cruikshank report, where Chancellor Gordon Brown and Don Cruikshank (now president of the London stock markets) looked to reduce costs for business - small business in particular - and consumers. The efforts took the form of an informal committee headed by Cruikshank, and one of the things focused upon was the payment system between retailers and card companies.

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