Two class-action claims valued at about £5 billion filed against Visa and Mastercard
Key Facts
Visa and Mastercard face two proposed class-action claims in Britain valued at about £5 billion, over consumer card transaction fees. Law firms Harcus Parker and Hausfeld applied to the Competition Appeal Tribunal to pursue the claims on behalf of businesses that say they have borne excessive fees since October 2020. The value is an estimate of the claims, not guaranteed compensation or a ruling against the two networks. Whether the class actions proceed depends on court proceedings, and the final compensation estimate has not yet been determined. The dispute focuses on multilateral interchange fees charged by the card networks when customers use their cards at businesses.
Visa and Mastercard set multilateral interchange fees, which businesses pay through their banks on each card purchase, according to the claim details. The applicants say weak competition in the system has led to higher fees for businesses. The dispute therefore concerns a cost that recurs with consumer card transactions, rather than a separate fee charged by Mastercard alone. The claims say businesses have borne these fees since October 2020, the period for which they are seeking compensation. But the allegation that the fees restricted competition and increased the amounts businesses paid has not been decided by the court, so the claims do not establish liability.
Mastercard challenged the basis of the claim, saying interchange fees play an important role in supporting the UK payments system. The Guardian quoted the company as saying: "We strongly disagree with the basis of this claim. Interchange fees play a vital role in supporting the payments system in the UK." Visa added that the fees are essential to maintaining a secure digital payments system that benefits consumers, merchants and banks. The company said: "Visa continues to believe that interchange fees are an essential component in maintaining a secure digital payments system." The responses put the networks' position at odds with the applicants' allegations about competition and the cost of accepting cards.
The claim includes two routes for determining which parties could be covered by compensation if the application succeeds. UK businesses, organisations and charities with revenue below £100 million may be included automatically, with the option to opt out. An estimated 1 million entities could be covered by this arrangement. Businesses with revenue above that threshold must actively join the claim to be included. Whether these entities are covered, and the value of any potential compensation, remain subject to the court's decision and the course of the proceedings.
The law firms' move comes as the UK government has opened a parallel discussion on reforming opt-out collective competition claims. The Department for Business and Trade published its consultation on 17 July 2026, setting out proposals to simplify procedures for these claims and improve their efficiency, including their filing, funding and settlement. This government process does not change the status of the application against Visa and Mastercard, but forms part of the broader debate over enforcement of collective competition claims in Britain. The Guardian reported that the case could take years to reach an outcome, leaving the timing of a ruling and any potential compensation unresolved for now.
Mastercard shares closed at $637.32 on 30 October 2026, according to EL7 data. The close comes amid the claim targeting the network alongside Visa, while the stated value remains an estimate tied to the outcome of the court proceedings. EL7 published a report on 26 October about a British claim valued at about £5 billion targeting both companies. The facts presented here contain no data on Visa's share movement or the market impact of the case. The next step is for the Competition Appeal Tribunal to consider the application to pursue the two claims, with no set date for an outcome to the dispute.