Two law firms, Harcus Parker and Hausfeld, have filed an application with the Competition Appeal Tribunal seeking approval to pursue a group claim against Visa and Mastercard. The legal action targets what the firms characterize as anticompetitive conduct and excessive fees imposed on UK businesses.
The crux of the claim centers on multilateral interchange fees, which represent charges that businesses pay through their banks whenever customers use cards for transactions. According to the claimants, the lack of competitive pressure in the payment processing market has enabled Visa and Mastercard to maintain elevated fee structures across debit, credit, and prepaid card transactions. The claim covers a six-year period beginning October 2020 and seeks not only reimbursement of allegedly inflated fees but also interest accrued on those charges.
Estimates suggest the claim could reach approximately £5bn in value based on calculations of affected businesses over the claim period. If approved, roughly 1 million UK-based businesses, organizations, and charities with revenues under £100m would be automatically enrolled in the compensation scheme unless they opt out. Larger enterprises would need to voluntarily join the claim but could potentially recover tens of millions of pounds each. The litigation is being financed by Bench Walk Advisors, a London-based litigation funder, and led by Stephen Allen, a British businessman who has pursued various legal actions against the two payment companies since 2021.
Mastercard disputed the allegations, characterizing the claim as speculative and part of what it describes as a troubling pattern of funder-backed litigation. A company spokesperson emphasized that interchange fees serve essential functions in supporting payment infrastructure and security. Visa similarly defended its fee structure, stating that interchange is vital to maintaining a secure digital payments ecosystem benefiting all participants in the system.
The resolution of such cases typically requires extended periods. A preceding US class action lawsuit against both companies, filed in 2011 and involving allegations of conspiracy to artificially inflate ATM fees, concluded with a combined settlement of $167.5m last year, illustrating the lengthy timeline such disputes can entail.
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