Visa and Mastercard Face £5bn UK Lawsuit Over Card Fees 2026

Visa and Mastercard are facing a potential £5bn lawsuit in the UK over allegations that they stifled competition and charged businesses excessive fees on card payments. The claim, lodged at the Competition Appeal Tribunal by law firms Harcus Parker and Hausfeld, seeks to compensate companies allegedly overcharged since October 2020.

The case centres on multilateral interchange fees, which are set by Visa and Mastercard and paid by businesses via their banks whenever a customer pays by card. The claimants argue that a lack of competition has left businesses at the mercy of the card giants, resulting in higher fees on debit, credit, and prepaid cards.

What the Lawsuit Alleges

The group claim aims to recover fees charged over the past six years, plus interest on those losses. Sources close to the claim estimate it could be worth about £5bn, based on the number of businesses allegedly overcharged between 2020 and 2026.

The law firms have applied to the Competition Appeal Tribunal to pursue the case as a group claim, which would automatically include affected businesses unless they opt out. This approach is similar to previous collective actions in the UK, such as the landmark Mastercard consumer case over card fees.

Why This Matters for UK Businesses

If the claim succeeds, thousands of UK businesses could receive compensation for fees they paid on card transactions. Even if it fails, the case highlights the ongoing scrutiny of card payment fees and could lead to changes in how interchange fees are set.

For businesses, card fees are a significant cost. According to the British Retail Consortium, card fees cost retailers around £1.3bn a year. A successful claim could put money back into the hands of businesses that have been struggling with rising costs.

• Potential compensation: Businesses overcharged since October 2020 could be eligible for a share of the £5bn claim.
• Opt-out option: Businesses can choose to opt out of the group claim if they prefer to pursue individual action.
• No upfront cost: The claim is being funded by Bench Walk Advisors, so affected businesses won't pay legal fees upfront.
• Precedent: The case could set a precedent for future competition claims in the payments sector.
• Timeline: The case is expected to take several years to resolve.

The Response from Visa and Mastercard

Mastercard has defended its interchange fees, calling the potential group claim “speculative” and part of a “growing trend of opportunistic funder-backed litigation.” The company argues that its fees are justified and that the claim lacks merit.

Visa has not yet commented publicly on the case. However, both companies have faced similar lawsuits in the past, including a long-running case brought by retailers over interchange fees, which was settled in 2020.

Who Is Behind the Claim?

The case is being funded by Bench Walk Advisors, a London-headquartered litigation funder launched in 2017. Bench Walk makes money by backing lawsuits and taking a share of any damages awarded.

The claim is being led by Stephen Allen, a British businessman and former travel sector executive. Allen has experience in bringing group claims, having previously been involved in a case against Mastercard on behalf of consumers. The background to this story is set out in Trump's $5bn Lawsuit Threat Over National Guard Policy Report. A related thread runs through Rent-Tech Platforms Sidestep Credit Card Surcharge Ban with New Fees. Earlier coverage in Revolut Outage: App and Card Payments Down for Millions shows how the argument developed.

What to Watch Next

The Competition Appeal Tribunal will first decide whether to certify the claim as a collective action. If it does, the case will proceed to trial, which could take several years. Businesses should monitor the proceedings and consider whether to opt out if they wish to pursue their own claims. A closer look at the same subject appears in Jim Chalmers Denies Albanese Rolled Him on Credit Card Tax Payments. Anyone following the wider picture can start with Australia Working Holiday Visa Cuts Threaten Regional Businesses. The same theme surfaces in Australia Visa Overstayer Detention Centres Spark Trump Comparison, which takes a different angle.

In the meantime, businesses can review their card processing costs and explore ways to reduce fees, such as negotiating with their payment providers or encouraging alternative payment methods. Context on how this played out before sits in Grindr Settles UK HIV Data Privacy Lawsuit for £26 Million. A companion piece, Business: latest articles, approaches the same subject from another angle.

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