The Competition Appeal Tribunal (the “Tribunal”) has ruled in favour of the Class Representatives, Commercial and Interregional Card Claims I & II Limited, allowing them to pursue compensation claims on behalf of businesses across the UK. The Tribunal’s decision certifies the claims, enabling the Class Representatives to seek redress for the unlawful fees paid by these businesses.
Mastercard and Visa had objected to the certification of the claims, but the Tribunal dismissed their arguments, allowing the cases to proceed as collective actions. Businesses are now urged to register their interest promptly to stay informed on the progress of the proceedings and, if successful, to claim a share of any damages awarded. The Tribunal has set a deadline for businesses to become involved in these claims.
For further details about the opt-in and opt-out collective claims, interested parties are encouraged to visit commercialcardclaim.co.uk.
Jeremy Robinson, a partner at Harcus Parker Limited, which represents the Class Representatives, welcomed the Tribunal’s decision. “We welcome the opportunity to hold Mastercard and Visa to account for imposing multilateral interchange fees at an unlawfully high level and causing substantial loss to UK businesses,” Robinson stated. “We are pleased that this important claim will now proceed despite Mastercard and Visa’s attempts over the last two years to deny thousands of UK businesses a straightforward and effective route to justice through the Competition Appeal Tribunal.
“Although in relation to different types of MIFs, both the UK Supreme Court and the Court of Justice of the EU have condemned similar practices engaged in by Mastercard and Visa. Holding global corporate giants to account through class action litigation is the best way to ensure the likes of Mastercard and Visa do not go on imposing unfair charges on businesses,” Robinson added.
Stephen Allen, the director of the Class Representatives, emphasised the importance of the claims, saying, “We are fighting to ensure businesses and organisations across the UK economy are properly compensated by Mastercard and Visa for their unlawful multilateral interchange fees.
“MIFs operate like a tax on business, increasing the fees businesses have to pay to their banks for accepting commercial card transactions. These claims seek to recover the losses businesses have suffered as a result of Visa and Mastercard’s practices and highlight the need for such practices to be abolished.
“UK businesses in the travel, hospitality, and retail sectors have been particularly hurt by Mastercard’s and Visa’s multilateral interchange fees, and we are delighted that this claim has been endorsed by leading trade bodies, including UK Hospitality and the Association of British Travel Agents (ABTA),” Allen concluded.
Multilateral Interchange Fees (MIFs) are fees paid by businesses to their banks, known as acquiring banks, when accepting commercial card transactions. The losses suffered by businesses across the UK due to these fees are significant, with estimates placing the total at no less than $4 billion.
Businesses that process payments via commercial cards are advised to visit the claims website to register and confirm their eligibility.
