Visa and Mastercard face £5 billion UK lawsuit over card‑payment fees
UK law firms Harcus Parker and Hausfeld have applied to the Competition Appeal Tribunal for a collective action against Visa and Mastercard, alleging that the networks overcharged UK merchants on multilateral interchange fees from October 2020 to 2026. The claim seeks roughly £5 billion in damages and interest for about one million businesses with revenues under £100 million, while larger firms would have to opt in. Both Visa and Mastercard deny the allegations, calling the claim speculative and defending the fees as essential to a secure payments ecosystem.
Why it matters
If the tribunal permits the claim, Visa and Mastercard could face a multi‑billion‑pound liability that would affect their UK earnings and may prompt a settlement or changes to fee structures. The outcome could also set a precedent for future competition‑law actions against card‑payment networks in Europe.
Key facts
- 1Law firms Harcus Parker and Hausfeld lodged an application at the Competition Appeal Tribunal to pursue a group claim against Visa and Mastercard. theguardian.com
- 2The claim alleges overcharging on multilateral interchange fees for transactions from October 2020 onward. theguardian.com
- 3The estimated value of the claim is about £5 billion, based on the number of businesses allegedly overcharged between 2020 and 2026. theguardian.com
- 4If approved, an estimated one million UK businesses with revenues below £100 million would be automatically included unless they opt out. theguardian.com
- 5Larger businesses would need to opt in and could be due tens of millions of pounds each. theguardian.com
- 6Visa and Mastercard both rejected the claim, saying interchange fees are critical to a secure and efficient payments ecosystem. theguardian.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.