UK files application for £5bn collective lawsuit against Visa and Mastercard — The Guardian
In the United Kingdom, law firms Harcus Parker and Hausfeld have filed an application with the Competition Appeal Tribunal for a collective lawsuit against Visa and Mastercard. The applicants seek compensation for companies which, they claim, have overpaid for customers’ card payments since October 2020.
As The Guardian reports, the claims concern multilateral interchange fees set by Visa and Mastercard. Businesses pay these fees through banks every time a customer pays with a debit, credit or prepaid card. The applicants believe that a lack of competition enabled the payment systems to set higher fees for businesses.
Potential compensation
According to sources familiar with the lawsuit, the amount claimed, including interest, could be about £5bn. It concerns the reimbursement of fees charged over six years, including during the 2020–2026 period.
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If the application is approved, around 1 million UK companies, organisations and charities with revenue below £100m will automatically be included in the claims unless they opt out. Compensation for each such organisation could amount to several thousand pounds. Larger companies will have to join the case independently; their claims could reach tens of millions of pounds.
Payment systems’ position
Mastercard said it disagreed with the grounds for the lawsuit and called it speculative. The company stressed that interchange fees play an important role in the UK payment system and ensure fast and secure transactions. Visa also said it considers these fees an important component of a secure digital payment ecosystem for consumers, merchants and banks.
The case is funded by the London-based company Bench Walk Advisors. The collective lawsuit is led by British businessman and former travel industry executive Stephen Allen, who has been pursuing several collective legal proceedings against Visa and Mastercard since 2021. The consideration of the case may take years.
