Litigation firm Harcus Parker is finalizing preparations for a significant class action lawsuit against Visa and Mastercard, alleging that businesses and organizations have suffered massive losses due to excessive interchange fees.
Case Overview
The case centers on Multilateral Interchange Fees (MIFs), which businesses incur when accepting payments via commercial cards. These fees, described as a “tax on businesses and charities,” have reportedly led to an estimated $4 billion in losses for retailers, charities, universities, hospitality providers, football clubs, and more.
Key Developments:
- Progress to the Courts: In August 2024, the UK’s Competition Appeal Tribunal approved the class action’s progression.
- Automatic and Voluntary Inclusion:
- Businesses with annual pre-COVID turnover under £100 million are automatically included unless they opt out.
- Larger firms must opt in by 10 February to join the claim.
Class Representatives’ Standpoint
Stephen Allen, director of the Class Representatives, criticized the fees, saying:
“MIFs are like a tax on businesses and charities, increasing the cost of accepting commercial card payments. This claim enables justice for years of being squeezed by these global card schemes.”
Allen added that public donations are indirectly impacted, as charities lose significant revenue to interchange fees.
Legal Precedents
Both the UK Supreme Court and the Court of Justice of the EU have previously condemned similar practices by Visa and Mastercard, bolstering the legal foundation for the claim.