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Two law firms have filed proposed UK class actions seeking damages from Visa and Mastercard over interchange fees paid by businesses. One case would automatically include eligible UK businesses with group turnover below £100 million, while a separate opt-in claim is aimed at larger businesses. The claims are not findings of liability, and both networks dispute the case or defend the role of interchange fees.
Two proposed UK class actions seek billions of pounds from Visa and Mastercard over card fees paid by businesses, with claims filed at the Competition Appeal Tribunal by law firms Harcus Parker and Hausfeld. The cases allege that the networks’ interchange fees restricted competition and led businesses to pay more, but the filings are claims, not a ruling that either company must pay damages.
The proceedings concern multilateral interchange fees (MIFs), which Visa and Mastercard set and businesses pay through their banks when customers use the networks’ consumer debit, credit or prepaid cards. The proposed claims cover transactions in the UK from October 2020 through October 2026. The claimants argue the fees were unlawfully high because they limited competition and increased businesses’ costs.
The two cases have different participation rules. Hausfeld’s proposed opt-out claim would automatically include UK-domiciled businesses whose annual group turnover was below £100 million in each relevant assessment period between 2022 and 2024, unless they choose to leave the case. Harcus Parker’s proposed opt-in claim may be open to businesses with annual group turnover of £100 million or more over that period. The claims are directed by Stephen Allen, a long-time travel-sector executive who has participated in card-fee challenges.
Visa and Mastercard reject or challenge the case against them. Mastercard told the Guardian it “strongly disagrees with the basis of this claim,” describing it as part of a trend of “opportunistic funder-backed litigation.” Visa said interchange is “a critical component to maintaining a secure digital payments ecosystem” that benefits consumers, merchants and banks. The companies have also signalled plans to appeal a separate CAT ruling on card fees.
Potential recovery for UK businesses
If the claims proceed and succeed, businesses could seek compensation for fees they say they paid because competition was restricted. The proposed coverage spans multiple business sizes, from smaller firms included by default in Hausfeld’s case to larger companies that may join Harcus Parker’s opt-in action. Any eventual recovery would depend on the legal findings and the amount of loss established.
The dispute concerns a cost attached to a large volume of everyday card transactions. Businesses pay interchange through their banks when customers use cards, so a decision about whether those fees were lawful could affect how the costs of card payments are borne. The cases do not, at this stage, establish that businesses passed fees on to customers or that card prices would change if the litigation succeeds.
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Earlier UK fee rulings and claims
The proposed cases follow years of UK legal challenges over interchange fees. In June 2025, the Competition Appeal Tribunal found that commercial and consumer card MIFs materially prevented, restricted and distorted competition. Visa and Mastercard have said they intend to appeal that decision. The proposed new claims rely on concerns about fees but remain separate proceedings; the earlier ruling does not itself decide the amount of any damages in these cases.
Another strand of litigation involved consumers rather than businesses. In May 2025, the CAT approved a £200 million Mastercard settlement in a class action brought on behalf of British consumers. The settlement could result in millions of shoppers receiving up to £70 each. That outcome is distinct from the newly filed business claims, which challenge fees paid by merchants and seek compensation for alleged business losses.
“Every business that takes cards pays these fees, from a corner shop to a national chain.”
— Stephen Allen, proposed class representative
Liability and damages remain open
The filings do not establish that Visa or Mastercard acted unlawfully in the transactions covered by these proposed cases, or how much any business may have lost. The proceedings must advance through the tribunal process, and the networks’ planned appeals of the June 2025 competition ruling could affect the wider legal picture. The source material does not specify a timetable for the tribunal to decide whether the proposed class actions can proceed.
It is also not yet clear which individual businesses will ultimately be included, how damages would be calculated, or whether fees paid during the full claimed period will be recoverable. Businesses that may fall within the opt-in group would need to establish their eligibility and decide whether to join; eligible smaller businesses would be covered by the opt-out case unless they leave it, subject to the tribunal process.
Tribunal decisions and business participation
The next developments are expected to come through the Competition Appeal Tribunal, which will consider the proposed proceedings and their scope. Businesses can monitor updates from the firms bringing the cases to learn how participation, eligibility and any deadlines are handled. The source report gives no dates for the next hearings or a final decision.
The separate appeals over the CAT’s June 2025 ruling are also pending. Until the tribunal processes and appeals advance, the claims remain allegations, and no business compensation has been awarded in these newly filed actions.
Key Questions
What are the proposed UK claims about?
They allege that Visa and Mastercard interchange fees restricted competition and caused UK businesses to pay more when customers used the networks’ consumer debit, credit or prepaid cards.
Which businesses could be included?
Hausfeld’s proposed opt-out case covers UK-domiciled businesses with annual group turnover below £100 million between 2022 and 2024, unless they opt out. Businesses at or above that turnover level may be eligible to join Harcus Parker’s separate opt-in case.
What period do the claims cover?
The proposed claims cover UK transactions involving Visa and/or Mastercard consumer cards from October 2020 to October 2026.
Have Visa and Mastercard been found liable in these cases?
No. These are proposed claims alleging unlawful fees; the filings are not a decision on liability or damages. The networks dispute the claims or defend the role of interchange fees.
How are these cases different from the Mastercard consumer settlement?
The newly proposed cases are brought on behalf of businesses over fees paid by merchants. The £200 million settlement approved in May 2025 concerned a separate consumer class action.
Source: finextra.com
