Visa and Mastercard face proposed UK card fee claims seeking an estimated £5 billion in compensation for businesses allegedly overcharged on consumer card transactions. Both payment networks dispute the allegations, and the claims have yet to be authorised.
Key Takeaways
- The applications cover alleged overcharging between October 23, 2020, and October 23, 2026.
- The proposed actions use different participation arrangements for businesses above and below a £100 million turnover threshold.
- The Competition Appeal Tribunal must authorise the collective proceedings before they can proceed in that form.
What the claims allege
Law firms Harcus Parker and Hausfeld filed applications with the Competition Appeal Tribunal on October 26, 2026. They allege that businesses paid excessive multilateral interchange fees on Visa and Mastercard consumer debit, credit and prepaid card transactions.
Card networks set interchange fees, which are paid through merchants’ banks and form part of the charges businesses pay to accept cards. The claimants argue that merchants have limited practical alternatives when customers want to use Visa or Mastercard, leaving the networks with insufficient competitive pressure on fees.
The proposed proceedings cover consumer card transactions across the UK. They are separate from a regulatory dispute over interchange fees on UK-to-European Economic Area online transactions.
| Item | Details |
|---|---|
| Below £100 million annual group turnover | UK-domiciled businesses would be included automatically in the proposed Hausfeld opt-out action unless they choose to leave. |
| £100 million or more annual group turnover | Businesses may qualify for the proposed Harcus Parker opt-in action and would need to take steps to participate. |
How the card fee claims would work
The applications divide businesses by annual group turnover during 2022–2024. The proposed classes cover businesses accepting the networks’ consumer cards, but exclude businesses that have previously brought or settled claims against either network concerning consumer card transactions.
Former travel-sector executive Stephen Allen is directing the proposed proceedings. Litigation funder Bench Walk Advisors is financing the action.
Visa and Mastercard dispute the allegations
Mastercard described the application as speculative and said interchange fees help people and businesses make and receive payments securely and efficiently. Visa also defended the fees as an important part of a secure digital payments system.
The estimated £5 billion is a potential claim value, not an established liability. Neither authorisation of the proceedings nor compensation for merchants is guaranteed.
Next milestone
The next step is for the tribunal to consider whether to authorise the collective proceedings.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
Comments
Be respectful. No spam, impersonation or private credentials. Ordinary posts and comments appear immediately; suspicious links are held for review.
Please wait…