Millions of people to receive £70 payout after credit card class action ruling

SOME 2.5 MILLION PEOPLE ARE EXPECTED TO COME FORWARD AND MAKE A CLAIM BEFORE THE END OF THE YEAR. JOSIE CLARKE, PA CONSUMER AFFAIRS CORRESPONDENT and LINDA HOWARD Money and Consumer Writer

07:40, 21 May 2025 Millions of people are set to receive up to £70 each following the final approval of a £200 million settlement against payment card provider Mastercard. The Competition

Appeal Tribunal gave its final approval on how the settlement should be distributed on Tuesday following the class action against Mastercard, which dates back to 2016. Consumers are eligible

if they lived in England, Wales or Northern Ireland for at least three months between June 1997 and June 2008, and who bought goods or services from UK businesses that accepted Mastercard

credit cards. For people in Scotland, the starting point is May 1992. It is not necessary to have owned a Mastercard at any point to make a claim. Claims must be made before the end of this

year. READ MORE: Free cash worth up to £175 from TSB, First Direct, NatWest and Coop BankREAD MORE: Top up your bank balance by winning a share of £2,000! Walter Merricks, the former

financial ombudsman, launched his claim after the European Commission ruled in 2007 that Mastercard’s “multilateral interchange fees” charged to businesses had since 1992 infringed

competition law. He alleged that 46 million shoppers in Britain were ‘ripped off’ after fees were wrongly levied on transactions made over a 15-year period between 1992 and 2008. The fees

were paid by retailers accepting Mastercard payments, rather than by consumers themselves. But Mr Merricks claimed shoppers had lost out as retailers passed on these fees in the form of

higher prices. It followed the arrival of the Consumer Rights Act 2015, which allowed for US-style class actions in UK competition claims. A statement from Mr Merricks said millions of UK

consumers who are part of the class action could now come forward and claim their share of the £200 million, with individuals potentially getting between £45 and £70 each. He said UK

consumers would shortly be able to register to receive a payment by completing a simple online form, regardless of whether they ever held a Mastercard card. It was expected that payments

would be made to consumers who register before the end of the year, he added. Commenting on the outcome, Mr Merricks said: “I started this case because I believed that Mastercard’s fees paid

by retailers for processing card transactions had been unlawfully high and virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as

retailers passed on those costs. “As the evidence came to be known through the litigation process, this was the position only in a relatively small proportion of transactions and the

settlement reflects that. “The settlement that has today been finally approved represents a fair and just outcome for UK consumers. “On any view, recovering £200 million by way of a

settlement for UK consumers is a huge sum, and that will translate into a meaningful impact in the pockets of UK consumers.” How to claim The judgment ringfences £100 million for consumers,

who will have until the end of 2025 to claim. If the expected 5 per cent of claimants – 2.5 million people – come forward, then they will receive £45 each. Should fewer claimants come

forward, payments will be capped at £70 per claimant. Consumers can make a claim online here. GET THE LATEST RECORD MONEY NEWS Join the conversation on our Money Saving Scotland Facebook

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