Major travel and hospitality businesses have less than two weeks to join the multibillion-pound class action lawsuits against Mastercard and Visa for the repayment of fees on commercial card payments.
The UK Competition Appeal Tribunal gave a go-ahead last August to collective proceedings over the multilateral interchange fees (MIFs) set by Mastercard and Visa on commercial card transactions from June 2016 to the present day.
Large businesses, with an average annual turnover of £100 million or more, must register to join the proceedings by February 10.
Lawyers acting on behalf of businesses in the proceedings estimate the amount owed by Mastercard and Visa to hospitality, travel and retail companies in the UK at more than £4 billion. They report travel and hospitality firms, retailers, charities, universities and football clubs have already joined the proceedings.
Any business which received payment by commercial card from June 2016 onwards can be included and, if the claim is successful, damages accrue until the date of judgment or settlement.
The Tribunal dismissed the objections of Mastercard and Visa to the claims being certified, ruling the cases could proceed as collective actions. It set the February 10 deadline.
Stephen Allen, the Class Representatives director, said: “MIFs are like a tax on businesses and charities, increasing the cost of accepting commercial card payments. This claim enables justice for years of being squeezed by these global card schemes.”
He noted: “The thousands of people who donate online or support UK charity shops will be shocked to learn how much money charities have lost because of excessive card fees.
“We hope Mastercard and Visa will stop punishing charities which accept commercial card payments by removing these fees.”
Jeremy Robinson, a partner at law firm Harcus Parker which is acting on behalf of the Class Representatives, said: “Class action litigation is the best way to ensure Mastercard and Visa stop these unlawful charges.”
Businesses with turnover below £100 million a year are automatically included in the claim but are advised to register. The class action is fully funded, free to join and insured against risk.
Mastercard has previously said: “We disagree with the basis of this claim. Businesses get real value when they choose to accept cards issued on our network, helping them ensure a guaranteed payment, reach new customers and reduce fraud.”
More information available at: commercialcardclaim.co.uk.