Visa and Mastercard face potential £5bn UK group claim over card fees
Harcus Parker and Hausfeld have applied to the UK Competition Appeal Tribunal for a group claim against Visa and Mastercard over card fees since October 2020.
What you need to know
Law firms Harcus Parker and Hausfeld have applied to the UK Competition Appeal Tribunal to bring a group claim against Visa and Mastercard, alleging UK businesses were overcharged on card payments since October 2020. Sources close to the claim estimate it could be worth about £5bn. Both card companies dispute the basis.
- Harcus Parker and Hausfeld lodged the application at the Competition Appeal Tribunal
- The claim centres on multilateral interchange fees paid by businesses on card payments
- Sources close to the claim estimate its value at about £5bn
- An estimated 1m smaller UK businesses would be automatically included unless they opt out
- Mastercard called the claim speculative and funder-backed; Visa defended interchange
What the claim alleges
The Guardian reports that Harcus Parker and Hausfeld have applied to the Competition Appeal Tribunal seeking to pursue a group claim on behalf of companies allegedly overcharged on customer card payments since October 2020.
The case centres on multilateral interchange fees, which Visa and Mastercard set and which businesses pay through their banks whenever a customer pays by card. The claimants argue that a lack of competition left businesses paying higher fees on debit, credit and prepaid cards.
The action seeks to recover fees charged over the past six years, plus interest. Sources close to the claim estimate it could be worth about £5bn, based on the number of businesses allegedly overcharged between 2020 and 2026. The case is funded by Bench Walk Advisors and led by Stephen Allen, who has pursued group actions against the two companies since 2021.
Who could be included and the companies' response
If the application succeeds, an estimated 1m UK businesses, organisations and charities with revenues below £100m would be automatically included unless they opt out, with individual claims possibly worth several thousands of pounds. Larger businesses would need to opt in and could be due tens of millions over the period. The Guardian notes the case could take years to conclude.
Mastercard said it strongly disagreed with the basis of the claim, describing interchange as vital to the UK payments ecosystem and the case as speculative and part of a growing trend of funder-backed litigation. Visa said interchange remains a critical component of a secure digital payments ecosystem benefiting consumers, merchants and banks.
What would businesses need to do to join the claim?
Smaller UK businesses, organisations and charities with revenues under £100m would be automatically included unless they opt out. Larger businesses would have to actively opt in to be included in the claim.
Sources & context
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