UK retailers face a further development in the legal challenge over card payment costs
Two new collective claims, estimated to be worth £5 billion, have brought against Visa and Mastercard in the Competition Appeal Tribunal (CAT).
The claims focus on multilateral interchange fees (MIFs) on consumer card transactions. These fees are set by the card schemes and form part of the costs businesses incur when accepting card payments. The proposed claims allege that these fees have restricted competition and resulted in businesses being overcharged. The allegations have yet to be determined by the Tribunal.
The proposed class representatives are Commercial and Interregional Card Claims I and II Limited, both directed by Stephen Allen and represented by Harcus Parker and Hausfeld respectively.
Who could be eligible?
The proposed claims cover UK businesses accepting Visa and Mastercard consumer debit, credit and prepaid cards between 23 October 2020 and 23 October 2026.
The proceedings are split by business size:
- Businesses with annual group turnover below £100 million: Hausfeld's proposed claim operates on an opt-out basis, meaning eligible businesses would generally be included automatically if the CAT authorises the proceedings, unless they opt out.
- Businesses with annual group turnover of £100 million or more: Harcus Parker's proposed claim operates on an opt-in basis, requiring eligible businesses to take steps to join if the proceedings are authorised.
The turnover test relates to 2022–2024. Businesses that have previously brought or settled relevant claims against Visa or Mastercard may be excluded, subject to the detailed class definitions.
The £5 billion figure represents the estimated value of the claims, not guaranteed compensation. The CAT has not yet authorised the proceedings or determined liability.
How does this relate to the recent XBIF claim?
The new MIF proceedings follow a separate claim lodged with the CAT in October 2026, estimated at more than £700 million, concerning cross-border interchange fees (XBIFs) on certain remote transactions involving cards issued in the European Economic Area.
While the XBI claim focuses on a specific category of cross-border payments, the new MIF claims address consumer card interchange fees across a broader range of UK transactions. Both bring attention to the cost of accepting card payments and the potential for businesses to seek redress through collective proceedings.
What should retailers do now?
Retailers should review their card payment records, retain merchant acquiring agreements and transaction data, and assess whether they may fall within the proposed class definitions. They should also monitor developments at the CAT and seek independent legal advice where appropriate.
The claims remain at an early stage, and any recovery will depend on the Tribunal's decisions and the eventual outcome of the proceedings.
We will continue to monitor developments in card fee litigation and push for greater transparency and competition in payment systems. For retailers, the immediate priority is to understand potential eligibility and preserve the information needed to assess any future claim.
