Visa and Mastercard threatened with potential £5bn UK lawsuit over fees
News Source
•Mon, 26 Oct 2026 15:30:57 GMT
📰 What Happened
Two law firms have asked a UK court to let them bring a £5bn group claim against Visa and Mastercard. Harcus Parker and Hausfeld say the card networks charged businesses too much since October 2020.
The case is about "interchange fees". Shops pay these, through their banks, every time a customer pays by card. The firms argue there is too little competition, so the fees stay high.
Mastercard called the claim "speculative" and said the fees keep payments safe and quick. Visa also defended the fees, saying they support a secure payments system.
🔍 The Backstory
If the Competition Appeal Tribunal allows the claim, about 1 million UK businesses, charities and organisations under £100m in revenue would be included automatically. Each could claim thousands of pounds. Bigger firms must opt in and could be owed tens of millions.
The case is backed by Bench Walk Advisors, which funds lawsuits for a share of any winnings. It is led by Stephen Allen, who has pursued the card firms since 2021. Cases like this can take years.
Last year both companies paid a combined $167.5m to settle a US case over cash machine fees. That case was first filed back in 2011.
🎯 Why It Matters
Card fees are a cost of doing business, and shops often add them to prices. If the claim wins, small businesses could get money back.
Two law firms have asked a UK court to let them bring a £5bn group claim against Visa and Mastercard. Harcus Parker and Hausfeld say the card networks charged businesses too much since October 2020.
The case is about "interchange fees". Shops pay these, through their banks, every time a customer pays by card. The firms argue there is too little competition, so the fees stay high.
Mastercard called the claim "speculative" and said the fees keep payments safe and quick. Visa also defended the fees, saying they support a secure payments system.
If the Competition Appeal Tribunal allows the claim, about 1 million UK businesses, charities and organisations under £100m in revenue would be included automatically. Each could claim thousands of pounds. Bigger firms must opt in and could be owed tens of millions.
The case is backed by Bench Walk Advisors, which funds lawsuits for a share of any winnings. It is led by Stephen Allen, who has pursued the card firms since 2021. Cases like this can take years.
Last year both companies paid a combined $167.5m to settle a US case over cash machine fees. That case was first filed back in 2011.
Card fees are a cost of doing business, and shops often add them to prices. If the claim wins, small businesses could get money back.