Class action claims against Mastercard and Visa for repayment of illegal fees on commercial card payments to travel, hospitality and retail businesses in the UK could total more than £4 billion.
The UK Competition Appeal Tribunal (CAT) gave a go-ahead in August for the collective action that could see businesses compensated for the multilateral interchange fees (MIFs) set by Mastercard and Visa on commercial card transactions.
Lawyers acting for the Class Representatives in these claims, or ‘collective proceedings’, allege businesses which received payments by commercial cards between June 2016 and June 2022 paid fees much higher than they should have been, causing them losses estimated to be at least $4 billion.
Any business which received payment by commercial card in that time could be included in the proceedings and, if the claim is successful, damages will continue to accrue until the date of judgment or settlement.
The Tribunal ordered that the claims – Commercial and Interregional Card Claims I & II – be certified, enabling the Class Representatives to seek compensation for the unlawful fees paid by UK businesses.
It dismissed Mastercard’s and Visa’s objections to the claims being certified, ruling that the cases can proceed as collective actions, and set a deadline for involvement in the claims.
Businesses are encouraged to register their interest now to stay updated on developments and, if successful, to claim their share of any damages.
Jeremy Robinson, partner at law firm Harcus Parker which is representing the Class Representatives, said: “We welcome the opportunity to hold Mastercard and Visa to account for imposing multilateral interchange fees at an unlawfully high level and causing substantial loss to UK businesses.
“We’re pleased this important claim will now proceed despite Mastercard and Visa’s attempts over the last two years to deny thousands of UK businesses a straightforward route to justice through the Competition Appeal Tribunal.”
Robinson said: “Both the UK Supreme Court and the Court of Justice of the EU have condemned similar practices engaged in by Mastercard and Visa in relation to different types of MIFs.
“Holding global corporate giants to account through class action litigation is the best way to ensure Mastercard and Visa do not go on imposing unfair charges on businesses.”
Stephen Allen, former head of Portman Travel and Wexas Travel and director of the Class Representatives, said: “We’re fighting to ensure businesses and organisations across the UK economy are properly compensated by Mastercard and Visa for their unlawful multilateral interchange fees.”
“These operate like a tax on business, increasing the fees businesses have to pay to their banks for accepting commercial card transactions.
“The claims seek to recover the losses businesses have suffered as a result of Visa and Mastercard’s practices and highlight the need for such practices to be abolished.”
Allen added: “We’re delighted this claim has been endorsed by leading trade bodies including UK Hospitality and Abta.
“UK businesses in the travel, hospitality, and retail sectors have been particularly hurt by Mastercard’s and Visa’s multilateral interchange fees.”
MIFs are paid by businesses through fees paid to their banks on acceptance of a commercial card transaction.
A spokesperson for Mastercard 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 grow their sales, ensure a guaranteed payment, reach new customers and reduce fraud.”
For more information about the opt-in and opt-out collective claims and to register, visit commercialcardclaim.co.uk