The proposed £700 million collective claim against Visa and Mastercard is the latest development in the ongoing scrutiny of card payment costs.
The claim is separate to, and independent of, the Payment Systems Regulator’s (PSR) XBIF market review and wider retail-sector calls, including our advocacy work calling for greater competition, transparency and reform of card fees.
What has happened?
On 8 October 2026, Ann Pope, a former Senior Director at the Competition and Markets Authority, filed a proposed collective claim against Visa and Mastercard at the Competition Appeal Tribunal (CAT), represented by Geradin Partners.
The claim seeks more than £700 million in compensation for approximately 126,000 UK businesses. It concerns alleged overcharging on card-not-present (CNP) UK–EEA transactions — online and other remote payments made by UK retailers when customers use cards issued in the European Economic Area (EEA). The proposed claim covers relevant transactions from October 2020 onwards.
The claim has not yet been determined, and the CAT has not automatically authorised the proceedings or established an entitlement to compensation.
Why does this matter to retailers?
Members will be familiar with the issue through the PSR’s market reviews and the BRC’s ongoing engagement on card payment costs and the need for reform.
Following the UK’s departure from the EU, Visa and Mastercard increased interchange fees on relevant CNP UK–EEA consumer card transactions:
| Card type | Previous fee | Increased fee |
|---|---|---|
| Consumer debit | 0.2% | 1.15% |
| Consumer credit | 0.3% | 1.5% |
The increases applied to Visa from October 2021 and Mastercard from April 2022.
In its December 2024 final report, the PSR found that a lack of effective competition had allowed the fees to rise to an unduly high level. It estimated that the increases were costing UK businesses an additional £150 million to £200 million annually.
For retailers, these fees add to the cost of accepting payments and can put further pressure on margins. The issue is particularly relevant to businesses with significant online sales to customers in the EEA.
The BRC has continued to press for reforms to card payment fees, alongside broader action to improve transparency and competition in the payments market.
What happens next?
The claim must progress through the CAT’s collective proceedings process:
- Authorisation: The proposed class representative must obtain a Collective Proceedings Order (CPO) allowing the claim to proceed collectively.
- Class definition: The CAT will consider which businesses and transactions fall within any authorised proceedings.
- Liability: The allegations and evidence will need to be examined before the tribunal can determine liability.
- Compensation: If liability is established, further steps will be required to assess damages and determine how any award is distributed.
The process may take considerable time. Retailers should monitor CAT case updates for formal applications, decisions and hearing dates. The filing of the claim does not mean compensation is imminent.
What should retailers do now?
Retailers should:
- Preserve historic records, including acquiring agreements, merchant service charge statements, payment processor invoices and transaction reports dating back to October 2020.
- Speak to payment providers about identifying CNP UK–EEA transactions, card schemes, card types and card-issuing countries.
- Monitor the proposed class definition to establish whether their business and transactions may be covered.
- Follow CAT developments and seek independent legal advice where necessary.
Retailers should not assume that all businesses or card transactions are included. Eligibility will depend on the scope of the proceedings and the applicable legal requirements. Total merchant service charges should also not be confused with the interchange fees potentially relevant to the claim.
Further information is available from the claim representatives at EEA Card Claim.
What about future fees?
The compensation claim is separate from the PSR’s work on future regulation. The PSR has decided not to proceed with an interim cap while it develops a more robust methodology for determining an appropriate longer-term cap on cross-border interchange fees.
Its 2026/27 work programme identifies further action on card fees, including cross-border interchange fees, as a priority.
The BRC will continue to press for reforms that address the cost and transparency of card payments for retailers. Any future regulatory cap could affect costs going forward, but would not automatically compensate businesses for historic fees.
What this means for members
The claim is a further development in the wider effort to address the cost of card payments for UK retailers. While the outcome remains uncertain, members should preserve relevant records, assess whether their transactions may fall within the proposed class and follow developments in both the legal proceedings and the PSR’s regulatory work.
The BRC will continue to monitor progress and update members as the position develops.
The claim is being brought on an opt-out basis. This means that, if the CAT authorises the collective proceedings and approves the relevant class, eligible UK businesses falling within the class would generally be included automatically unless they opt out, subject to the terms of the tribunal’s order. Retailers should monitor the final class definition and any instructions issued by the CAT before deciding what action, if any, they need to take.
