Class action lawsuit progresses against Visa and Mastercard on behalf of UK businesses

A “significant” class action lawsuit against Visa and Mastercard has progressed at the UK’s specialist competition tribunal.

The Competition Appeal Tribunal (CAT) has set a date in April 2023 for a Collective Proceedings Order hearing, which will determine whether the claim, on behalf of a large number of businesses seeking damages for allegedly unlawful charges, can proceed to a full trial.

Harcus Parker, a London based commercial litigation law firm specialising in group litigation, competition litigation and class action lawsuits, has brought the corporate card claim at the CAT, the UK’s specialist judicial body for hearing competition cases.

The class action seeks compensation for UK businesses, which were charged Multilateral Interchange Fees (MIFs) for accepting payments using corporate credit cards, as well as for both credit and debit cards used by overseas visitors. The CAT has published the claim on its website and has now agreed to hear the application for a Collective Proceedings Order.

Harcus Parker claims that Visa and Mastercard have forced banks to agree to a level of MIFs set by the two giants, which are “anti- competitive and unlawful”.

Jeremy Robinson, competition litigation partner at Harcus Parker, commented: “We want to ensure businesses across the UK economy are properly compensated. We are making a stand against unlawful interchange fees, which should be abolished.

“Both the UK Supreme Court and the Court of Justice of the EU have condemned this practice for consumer credit and debit cards. The UK courts should now clamp down on commercial card fees and consumer card inter-regional fees.

“UK businesses in the travel, hospitality, retail and luxury sectors are particularly hurt by Mastercard and Visa’s multilateral interchange fees and we are pleased that this important claim has been endorsed by a number of leading trade bodies including UKHospitality and ABTA.”

Multilateral Interchange Fees make up the greater part of the service charges levied by banks on businesses when customers pay by card. Typically, for every £100 spent, up to £1.80 is charged on payments made by corporate cards, or cards used by overseas visitors, costs which are borne by companies throughout the UK.

The class action is open to all businesses, including large international companies and local businesses, as well as some non-UK companies. Many of these businesses, particularly in the travel and hospitality sectors but also the luxury sector too, have been particularly hard hit by Brexit, Covid-19 and the current economic climate.

By Matthew Neville – Correspondent, Bdaily

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