Visa and Mastercard are facing two proposed UK collective actions that could seek around £5 billion in compensation over allegedly unlawful interchange fees charged on consumer card payments.
Visa and Mastercard Face £5bn UK Class Action
The claims have been filed with the Competition Appeal Tribunal by law firms Hausfeld and Harcus Parker and are being led by Stephen Allen, a long-standing travel industry executive who has pursued a number of legal challenges against card fees.
The actions would cover transactions involving Visa and Mastercard consumer debit, credit and prepaid cards in the UK between October 2020 and October 2026.
At the centre of the case are multilateral interchange fees, or MIFs, which form part of the merchant service charge paid by businesses when customers pay by card.
The claimants allege that these fees restricted competition and caused merchants to pay more than they otherwise would have done.
Previous CAT Ruling Strengthens the Claimants’ Case
The litigation comes after the Competition Appeal Tribunal ruled in June 2025 that certain commercial and consumer card MIFs materially prevented, restricted and distorted competition.
Visa and Mastercard have both indicated that they intend to appeal that ruling.
Allen said the proposed actions were intended to give UK businesses the opportunity to recover what they say were excessive card acceptance costs.
Mastercard has rejected the basis of the claims, describing them as opportunistic funder-backed litigation.
Visa has also defended interchange, arguing that it remains an important part of maintaining a secure digital payments ecosystem for consumers, merchants and banks.
Small Businesses Would Be Included Automatically
The two proceedings are structured differently. UK businesses with annual group turnover below £100 million between 2022 and 2024 would be automatically included in the Hausfeld-led opt-out action unless they choose to leave.
Larger businesses with annual turnover of £100 million or more would need to opt in to the Harcus Parker proceedings.
If approved, the case could cover roughly one million businesses.
Companies already pursuing separate claims against Visa or Mastercard, or whose claims have been settled previously, would not be eligible to participate.
Interchange Remains a Legal and Regulatory Battleground
The latest action adds to years of litigation over card fees in the UK.
Mastercard recently secured tribunal approval for a £200 million settlement in a separate consumer class action, while the High Court has also backed the UK Payment Systems Regulator’s authority to impose controls on cross-border interchange fees.
The current claims therefore sit within a wider challenge to the economics of card acceptance.
For merchants, the case is ultimately about whether interchange represents a legitimate cost of maintaining the card ecosystem or an excessive charge created by limited competition. The answer could have significant implications for the future pricing of card payments in the UK.
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