Mastercard: Millions of consumers could get £70 after unfair fees ruling

A recent court ruling has determined that millions of consumers may be entitled to receive up to £70 each following a decision regarding unfair fees imposed by card provider Mastercard in the past. The ruling stems from a lengthy legal battle initiated by former financial ombudsman, Walter Merricks, dating back nearly ten years. Merricks contended that customers were subjected to inflated prices as a result of fees wrongly imposed on transactions carried out between 1992 and 2008.

Interestingly, individuals do not need to have possessed a Mastercard during this period to qualify for compensation. Notably, Mastercard has refrained from making any public statements regarding the court’s decision. Eligible consumers who resided in England, Wales, or Northern Ireland for at least three months between June 1997 and June 2008, and made purchases from UK businesses accepting Mastercard credit cards, are eligible to make a claim.

The total settlement amounts to £200m, with £100m specifically allocated for consumers who have until the conclusion of this year to file a claim. If the anticipated 5% of claimants, totaling 2.5 million individuals, come forward, each person is expected to receive £45. In the event that fewer people apply, the compensation per claimant will be capped at £70. Merricks has indicated that consumers will soon be able to register for a payout by completing an online form.

Merricks initiated legal action following a ruling by the European Commission in 2007, which deemed Mastercard’s “multilateral interchange fees” to be in violation of competition law since 1992. These fees were borne by merchants accepting Mastercard payments rather than directly by consumers. Despite retailers covering the fees, Merricks argued that shoppers ultimately suffered due to the increased costs being passed on through higher prices for products and services. Merricks estimated that a staggering 46 million British consumers were affected by these overcharges. Any unclaimed funds are expected to be allocated to the entity that financed the lawsuit. Reflecting on the case’s conclusion, Merricks stated that he initiated the legal action because he believed that the fees imposed by Mastercard on retailers for processing card transactions were unlawfully excessive, resulting in UK consumers paying inflated prices for significant periods

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