A new claim against Visa and Mastercard could lead to compensation for millions of UK consumers.
The claim alleges that the two payment companies charged unlawfully high card payment fees, increasing costs for businesses, with some of those costs ultimately being passed on to consumers through higher prices.
It is estimated that around 43 million people across the UK could be eligible for compensation if the claim succeeds.
Why are Visa and Mastercard being sued?
Whenever someone pays for goods or services using a debit or credit card, several fees are paid between the businesses and banks involved in processing that transaction.
The claim alleges that Visa and Mastercard set some of those fees at unlawfully high levels, resulting in businesses paying more to accept card payments.
According to the claim, some businesses recovered those additional costs by increasing the prices paid by consumers.
The claim is seeking compensation for the consumers who ultimately paid those higher prices.
Which consumers could be affected?
Unlike many consumer claims, eligibility would not depend on whether you personally paid using a Visa or Mastercard.
The allegation is that businesses increased their prices to reflect higher card processing costs, meaning all customers could have paid more regardless of how they chose to pay.
At this stage, the proposed claim focuses on three areas where previous Tribunal decisions found evidence that some of these costs were passed on to consumers. These are insurance (including car and home insurance), travel booked through online travel companies, and international money transfer and foreign exchange services.
Other sectors may have passed on similar costs. Whether those areas become part of this consumer action will depend on how the case develops.
What happens next?
The claim has not yet been certified by the Competition Appeal Tribunal.
Before it can move forward, the Tribunal must decide whether it is suitable to proceed as a collective action.
If the claim is certified, eligible consumers would automatically be included unless they choose to opt out. You can find out more about opt-out claims in our guide.
The case would then continue through the Tribunal alongside related proceedings already being brought by businesses that accepted Visa and Mastercard payments.
Further hearings are expected during 2027 and 2028.
We will continue to monitor developments and provide updates as the case progresses.
