Work on a class action claim for repayment of fees on commercial card payments by Mastercard and Visa is poised to “ramp up significantly” in pursuit of what could be a billion-pound payout to industry players.
The Competition Appeal Tribunal gave the go-ahead to ‘collective proceedings’ on behalf of companies in June, and this was confirmed on August 9, two years after specialist law firm Harcus Parker launched the proceedings.
The claim for overcharging on ‘multilateral interchange fees’ on card payments will now proceed to trial.
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Businesses pay these fees to the banks which process card payments, but the charges are set by Visa and Mastercard. Harcus Parker lawyers argue the rates are “anticompetitive and unlawful”.
Harcus Parker competition litigation partner Jeremy Robinson described it as “a fantastic opportunity”, saying: “If you accepted card payments, you should claim. We’re looking for businesses of all sizes which transacted in the UK and accepted commercial card payments.”
He noted Visa and Mastercard agreed a $30 billion settlement over similar fees in the US in March, although the settlement was subsequently rejected by a judge, arguing: “Mastercard and Visa were prepared to settle in the US and should be prepared to settle in the UK.”
However, Robinson said: “The judge rejected the [US] settlement because it did not go far enough.”
Companies with turnover of £100 million-plus a year are required to opt into the claim. Those with turnover below £100 million are included unless they opt out but are still asked to register.
Harcus Parker is working with Steve Allen, former head of Portman Travel and Wexas Travel, to liaise with the industry and has appointed an advisory panel which includes UKHospitality chief executive Kate Nicholls.
Allen explained: “We’ve been given a green light and are asking both large and small businesses to register so we know where the money is to be distributed if successful.
“The claim is fully financed and insured, so there is no cost.”
A ruling on an ‘umbrella proceedings’ claim in February, which grouped up to 1,000 individual claims, is awaited ahead of a trial in November.
Smaller businesses have until early November to register, larger businesses until early February, at commercialcardclaim.co.uk.