Visa and Mastercard Face Potential £5bn UK Group Claim Over Card Fees

Visa and Mastercard are facing the threat of a potential £5bn UK lawsuit over the fees they charge on card payments, after an application was made for a group claim seeking compensation for companies allegedly overcharged on customer card payments. The claim targets the two card networks over the fees levied on businesses when customers pay by card, with the applicants seeking to bring the case on behalf of affected companies.

The application for a group claim is the first formal step in what could become one of the largest competition-style actions brought in the UK payments market, with the claimed value put at £5bn. The case centres on the allegation that companies were overcharged on customer card payments processed through the Visa and Mastercard networks.

The two networks dominate card payments in the UK, and the fees they set are borne by merchants that accept cards. A group claim of this scale would put the fee structures of both companies under scrutiny in the UK courts.

For investors, the application introduces a potential liability of up to £5bn across the two listed payments companies, though the claim has yet to be certified and no findings have been made. The outcome will depend on how the group claim application proceeds and whether the case advances to a full hearing. Companies that accept card payments stand to be the beneficiaries of any compensation if the claim succeeds.