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Visa and Mastercard fee claim: what it means for you

A new group claim, valued at about £5bn by sources close to it, says Visa and Mastercard overcharged UK businesses on interchange fees since 2020. Who could be included, why nothing is payable yet, and the records to keep now.

A new group claim lodged at the Competition Appeal Tribunal and reported on 26 October 2026 says Visa and Mastercard overcharged UK businesses on card fees since October 2020, and it could cover around a million businesses, charities and organisations with turnover under £100m. If the tribunal lets it go ahead, smaller businesses would be included automatically unless they opt out, but nothing is payable yet and any outcome is likely to be years away.

What is the new Visa and Mastercard claim about?

Every time a customer pays you by card, part of what you pay your card machine provider is an interchange fee. It goes to the customer's card-issuing bank, and the rates are set by Visa and Mastercard. The claim, brought by law firms Harcus Parker and Hausfeld with Stephen Allen as the proposed lead claimant, argues that a lack of competition left businesses paying more than they should on debit, credit and prepaid card payments.

According to reporting by The Guardian, sources close to the claim put its value at about £5bn, covering the six years from October 2020 plus interest. It is funded by litigation funder Bench Walk Advisors. Both card schemes reject it: Mastercard called it "speculative", and Visa said interchange is a critical part of a secure payments system that benefits consumers, merchants and banks.

Who would be included?

  • Turnover under £100m: UK businesses, organisations and charities would be in the claim automatically on an "opt-out" basis, if the tribunal approves it.
  • Turnover of £100m or more: these businesses would have to actively opt in.

That would cover most cafés, shops, salons, trades and hospitality businesses that take card payments.

Is this the only claim?

No. On 8 October 2026 a separate claim was filed by Ann Pope, a former senior director at the Competition and Markets Authority. It concerns online and other remote payments made to UK businesses with cards issued in the European Economic Area (EEA) since October 2020, after the fees on those payments rose sharply following Brexit. The British Retail Consortium reports it is worth more than £700 million and covers about 126,000 UK businesses, also on an opt-out basis.

These claims follow years of earlier interchange litigation in the UK, and not every application succeeds. In 2023 the tribunal declined to certify four proposed collective claims over commercial card and cross-border fees in their original form, because the method for proving loss was not yet good enough.

What this means for your business

In short: possibly something in the long run, nothing today.

  • No money is due yet. The tribunal first has to decide whether the claim can proceed as a collective action. After that, liability and any damages still have to be decided or settled.
  • You don't need to sign up with anyone. If an opt-out claim is approved and your business falls inside the class, you are included without doing anything. Be wary of anyone asking for an upfront fee to "register" you.
  • Your card fees don't change because of the claim. Whatever you pay on your next statement is set by your contract with your provider.

The last point matters most for day-to-day cash flow. A claim that may pay out in several years does not help with the fees leaving your account this month.

What should you do now?

  1. Keep your statements. Save your monthly merchant statements, invoices from your card provider and your contract, going back as far as you can (ideally to October 2020). If an opt-out claim succeeds, you may need records to show what you processed.
  2. Ask your provider for older statements now. If you have changed provider, request past statements before access to old online accounts lapses.
  3. Know what you actually pay. Your total charge is made up of interchange, card scheme fees and your provider's own margin. Interchange is only one part, and it is the part these claims are about.
  4. Watch for official updates. Follow progress on the Competition Appeal Tribunal website rather than relying on social media posts or cold calls.
  5. Get independent legal advice if you are a large business deciding whether to opt in.

A worked example: how we read a card statement

When we review a statement, we first separate the charges into three groups: interchange (set by the card schemes and paid to the cardholder's bank), scheme fees (paid to Visa or Mastercard) and the provider's own margin (monthly fees, terminal rental, per-transaction charges and any markup). Then we look at the mix of cards you take. A business with many premium credit, business or overseas cards usually pays more than one taking mostly UK debit cards, even on the same contract.

On a "blended" price, where you pay one rate for every card, these groups are hidden, so it is hard to tell how much of your bill is interchange and how much is margin. On an "interchange plus" or "interchange plus plus" price, they are shown separately. Neither is always cheaper; it depends on your card mix and volumes. The margin is the part you can usually negotiate, and it is where a review is most likely to find something worth changing.

Frequently asked questions

Do I need to join the Visa and Mastercard claim?

If your business has turnover under £100m and the tribunal approves the claim as opt-out, you would be included automatically. Businesses at or above £100m would need to opt in. Nothing is approved yet.

How much could my business get?

No one can say yet. Reports suggest smaller businesses could be owed several thousand pounds each if the claim succeeds, but the claim may fail, settle for less, or take years. Don't plan your finances around it.

Will my card machine fees go down because of this?

Not directly. Your current fees depend on your contract and your provider's pricing. The quickest way to see what you could change today is to check your latest statement against your contract.

Want a second pair of eyes on your card fees?

We look at your latest card statement, break down what you are paying and tell you plainly whether there is anything worth changing. If your current deal is fair, we will say so.

Call or WhatsApp 07777 175890.

This article is general information, not legal advice. Jos Finserv Ltd is not involved in either claim.

Jos Finserv Ltd (company no. 14560046) is an independent broker. For business finance we are a credit broker, not a lender, and we may receive commission from providers. Approval and terms depend on your trading history. No obligation.

Sources

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Tell us how to reach you and we will come back with what is actually available for a business like yours. We are paid by the provider, not by you, so this costs you nothing either way.

  • We read your current statement and explain it in plain terms
  • No obligation, and no pressure to move if you are already well placed
  • One conversation, not a sequence of calls

Prefer to work it out yourself first? Use the card fee calculator, or check whether finance is worth exploring.

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