Visa and Mastercard ordered to give compensation for overcharging. Businesses invited to join collective action claim

Mastercard and VISA are facing a claim worth over £4 billion for imposing illegal, multilateral interchange fees, which could lead to UK businesses – including health club operators – being owed millions.

The Competition Appeal Tribunal recently gave the go-ahead for a collective action, being brought by Class Representatives, that could see businesses compensated for the unlawful multilateral interchange fees (MIFs) set by Mastercard and VISA that applied to transactions involving commercial cards in the UK.

The claim alleges that businesses that received payments by commercial cards paid fees much higher than they should have been, causing them significant losses. The claim period runs from June 2016 to June 2022, with damages continuing to accrue until the date of judgment or settlement.

Stephen Allen, the director of Class Representatives says: “UK businesses in the retail travel, leisure and hospitality sectors have been particularly hurt by Mastercard’s and Visa’s multilateral interchange fees and we're delighted that this claim has been endorsed by leading trade bodies, including UK Hospitality and the Association of British Travel Agents (ABTA). These claims seek to recover the losses businesses have suffered as a result of Visa's and Mastercard's practices and highlight the need for such practices to be abolished."

Jeremy Robinson, a partner at Harcus Parker Limited, representing Class Representatives says: “We're pleased that this important claim will now proceed, despite Mastercard’s and Visa’s attempts over the last two years to deny thousands of UK businesses a straightforward and effective route to justice through the Competition Appeal Tribunal.”

For more information about the opt-in and opt-out collective claims, visit www.commercialcardclaim.co.uk.