Business · Companies · 2 hrs ago
Visa and Mastercard face £5bn UK claim over card fees
Lawyers are seeking about £5bn from Visa and Mastercard in a UK collective claim over fees paid by businesses.
The claim concerns payments made since October 2020, and smaller businesses would be included automatically unless they opt out.
The case challenges the fees charged when customers pay by card, arguing that weak competition left businesses facing higher costs.
The dispute focuses on whether the multilateral interchange fee was too high because Visa and Mastercard dominate the market.
If the claim succeeds, businesses could receive compensation for alleged overpayments on credit, debit and prepaid card transactions.
Mastercard rejects the basis of the claim, while Visa says its role is critical to keeping digital payments secure.
Visa and Mastercard face a UK collective claim seeking about £5bn over card fees paid by businesses.
Law firms Harcus Parker and Hausfeld have applied to the Competition Appeal Tribunal for compensation for businesses.
The claim alleges that a lack of competition led to excessive fees on card payments from October 2020.
Mastercard strongly disputes the basis of the claim, while Visa says its role is critical to maintaining the security of the digital payments ecosystem.
- Who
- Visa and Mastercard face the claim, brought by law firms Harcus Parker and Hausfeld on behalf of UK businesses.
- What
- A collective claim seeks about £5bn in compensation over card fees.
- When
- The claim concerns payments from October 2020 over the following six years. The law firms have presented an application to the tribunal.
- Where
- The case is before the UK Competition Appeal Tribunal in London.
- Why
- The claim alleges that a lack of competition left businesses paying excessive fees on card transactions.
UK businesses bringing the claim
Mastercard and Visa
Competition and fees
UK businesses bringing the claim
The claim alleges that a lack of competition allowed excessive fees to be charged to businesses.
Mastercard and Visa
Mastercard strongly disagrees with the basis of the claim; Visa says its role is critical to maintaining the security of the digital payments ecosystem.
Compensation
UK businesses bringing the claim
The law firms seek compensation for businesses that allegedly paid too much in card fees.
Mastercard and Visa
The companies’ positions on the compensation sought are not stated.
The claim period for allegedly excessive fees on businesses’ card payments begins.
Harcus Parker and Hausfeld have presented an application to the Competition Appeal Tribunal seeking compensation.
- Claim value
- About £5bn
- Claim period begins
- October 2020
- Claimants’ law firms
- Harcus Parker and Hausfeld
- Tribunal
- Competition Appeal Tribunal, London
- Class action funding
- Brench Walk Advisors
What people are saying
strongly disagrees with the basis of the claim
critical