Law firms Harcus Parker and Hausfeld have applied to bring a group claim against Visa and Mastercard over UK card fees. Sources close to the claim put its potential value at about £5bn. Both card networks defend the fees.
Visa and Mastercard face a potential £5bn lawsuit alleging they stifled competition and charged UK businesses excessive fees. The law firms Harcus Parker and Hausfeld lodged an application at the Competition Appeal Tribunal to pursue a group claim for companies they say were overcharged on customer card payments since October 2020.
The claim targets interchange fees
The case centres on multilateral interchange fees, which Visa and Mastercard set and businesses pay through their banks every time a customer pays by card. The claimants argue that a lack of competition leaves businesses paying higher fees on debit, credit and prepaid cards.
Claimants would seek to recover fees charged over the past six years, plus interest. Sources close to the claim estimate it could be worth about £5bn, based on the number of businesses allegedly overcharged between 2020 and 2026.
Who would be covered
If the application succeeds, an estimated 1m UK-based businesses, organisations and charities with less than £100m in revenues would join automatically unless they opt out. Their claims could be worth several thousands of pounds each. Larger businesses would have to opt in, and could be due tens of millions over the claim period.
Bench Walk Advisors, a London-headquartered firm that launched in 2017 and makes money from backing lawsuits, funds the case. Stephen Allen, a British businessman and former travel sector executive, leads it. He has pursued Visa and Mastercard through a number of group legal actions since 2021.
Card networks push back
A Mastercard spokesperson defended the fees, saying the potential claim is part of a "growing trend of opportunistic funder-backed litigation". A Visa spokesperson said the company continues to believe interchange is a critical component of maintaining a secure digital payments ecosystem.
However, it could take years for the case to conclude. Last year, Visa and Mastercard agreed to pay a combined $167.5m to settle a US class action over ATM access fees, a lawsuit originally filed in 2011.
Source: The Guardian
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