UNDERSTANDING THE CLASS ACTION AGAINST MASTERCARD AND VISA: WHAT MERCHANTS NEED TO KNOW

CLASS ACTION AGAINST MASTERCARD AND VISA 2024/2025

The UK Competition Appeal Tribunal (CAT) has certified a class action against Mastercard and Visa for alleged anti-competitive practices related to multilateral interchange fees (MIFs) on commercial card transactions. If your business has accepted payments via Mastercard or Visa commercial credit or debit cards, this action could be relevant to you. Below, we outline the key aspects of the claim, its implications, and why it might be worth considering joining. Merchant Advice Service is here to guide you through this process and answer any questions.

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WHAT ARE MULTILATERAL INTERCHANGE FEES (MIFS)?

MIFs are fees paid by acquiring banks (the banks that process payments for merchants) to issuing banks (the banks that provide cards to customers) for each card transaction. For commercial cards, these fees are unregulated, often ranging between 1.5% and 2% of the transaction value, compared to the regulated rates of 0.2% for consumer debit cards and 0.3% for consumer credit cards. These fees are typically passed on to merchants through service charges, impacting businesses' bottom lines.

THE BASIS OF THE CLASS ACTION

The claim argues that Mastercard and Visa unlawfully set the MIF levels for commercial card transactions, leading to anti-competitive practices. The primary allegations include unlawful price setting by Mastercard and Visa, restricting competition and unfairly inflating costs for businesses. The overcharged MIFs were passed on to merchants, causing financial harm. The class action seeks to recover damages for these overcharges, which could be substantial for affected merchants.

ELIGIBILITY TO JOIN

To participate in the claim, businesses must meet the following criteria:

• Accept Mastercard or Visa commercial card payments: If your business has processed payments using commercial credit or debit cards between June 6, 2016, and June 6, 2022, you may be eligible.
• Turnover threshold: Businesses must have had an average annual turnover of ￡100 million or more during the financial years 2016-2019.

WHY OPT-IN?

Joining the class action involves minimal risk and effort:

• No upfront costs: The litigation is fully funded by a litigation funder.
• No financial risk: Comprehensive After-the-Event (ATE) insurance covers any adverse costs if the claim is unsuccessful.
• Minimal involvement: The Class Representative manages the litigation. Your role is limited to providing data on interchange fees paid, which can often be obtained from your payment processor.

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POTENTIAL COMPENSATION

While the exact compensation varies, businesses could recover a significant portion of overcharged MIFs, plus interest. For instance, if your business paid an average of ￡10,000 per month in MIFs on commercial card transactions, your total payments over a 10-year period might amount to ￡1.2 million, excluding interest. It’s important to note that while the claim seeks the full overcharged amount, the CAT may adjust damages based on various factors, such as justified fee levels or passed-on costs to customers.

NEXT STEPS: SPEAK TO US – IT’S FREE AND SIMPLE

If you’re considering joining the class action against Mastercard and Visa, Merchant Advice Service is here to help you every step of the way. Our process is designed to be straightforward and risk-free for your business.

Why Speak to Us?

• It’s completely free: There’s no cost to contact us, and joining the claim involves no upfront charges.
• We handle the complexities: Our team of experts will guide you through the process, ensuring minimal disruption to your business operations.
• Confidential support: We can help you identify whether your business has been affected by reviewing your data securely and confidentially.

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HOW TO CONNECT

• Reach out today: Contact us via phone or email to discuss your eligibility and next steps.
• Fast eligibility check: We’ll help you determine if your business qualifies for the claim – it takes just a few minutes.
• Start your claim: Once eligibility is confirmed, we’ll handle the legal paperwork, with no cost to you.

CLASS ACTION DEADLINE 2025

• Preserve your rights: By starting the process early, you can ensure your claim is fully protected before the deadline of February 10, 2025.
• It’s risk-free: If the claim doesn’t succeed, you won’t face any costs thanks to comprehensive insurance coverage.

LET’S GET STARTED

Don’t leave potential compensation on the table. Speak to us today to find out how you can join this claim with no cost, no risk, and no hassle.

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