Commercial litigation firm Harcus Parker is reaching the final stages of preparation for commencement of a multi-billion pound class action lawsuit over interchange fees charged by Mastercard and Visa.
Retailers, charities, universities, travel and hospitality companies, football clubs and others have already joined the claims.
The Class Representatives claim damages from Mastercard and Visa on behalf of card-accepting merchants including charities. They allege that businesses overpay interchange fees when customers pay them by commercial card - causing an estimated $4 billion in collective losses.
In August 2024, the Competition Appeal Tribunal allowed the class action to progress. Businesses with an annual pre-Covid turnover of under £100 million will be automatically included in the claim unless they choose to opt out. Firms with a higher turnover are invited to opt in before the application window closes on 10 February.
Stephen Allen, the director of the Class Representatives, says: "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.
"The thousands of people who donate online or support UK charity shops will be shocked and disappointed to learn how much money charities have lost because of excessive card fees. We hope Mastercard and Visa will stop punishing charities who accept commercial card payments by removing these onerous fees."
He points out that both the UK Supreme Court and the Court of Justice of the EU have condemned similar practices engaged in by Mastercard and Visa.