Commercial litigation firm Harcus Parker is finalizing preparations for a multi-billion-pound class action lawsuit concerning interchange fees imposed by Mastercard and Visa.
Retailers, charities, universities, travel and hospitality companies, as well as football clubs, have already joined the claims. The Class Representatives seek damages from Mastercard and Visa on behalf of merchants that accept card payments, including charities. They assert that businesses are overpaying interchange fees when customers use commercial cards, leading to an estimated $4 billion in collective losses.
In August 2024, the Competition Appeal Tribunal permitted the class action to advance. Businesses with annual pre-Covid turnover under £100 million will be automatically included in the claim unless they opt out. Those with higher turnover are invited to join the claim before the cutoff date of February 10.
Stephen Allen, the director of the Class Representatives, states: “MIFs are akin to a tax on businesses and charities, raising the cost of accepting commercial card payments. This claim seeks justice for years of being burdened by these global card schemes.”
He notes that the significant financial impact on charities is distressing. “The thousands of people who donate online or support UK charity shops will be shocked and disappointed to learn how much money charities have lost due to excessive card fees. We hope Mastercard and Visa will stop penalizing charities that accept commercial card payments by eliminating these burdensome fees.”
Allen also highlights that both the UK Supreme Court and the Court of Justice of the EU have criticized similar practices by Mastercard and Visa.