Millions of brits to receive £70 after £200m mastercard settlement

IT COMES AS A NINE-YEAR SETTLEMENT COMES TO AN END 17:18, 20 May 2025 Millions of Brits are set to receive up to £70 each after a £200 million settlement against payment card provider

Mastercard. In a settlement dating back to 2016, the Competition Appeal Tribunal gave its final approval on how the settlement should be distributed on Tuesday, May 20, following the class

action against Mastercard. Former financial ombudsman Walter Merricks 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.” 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 those who

live in Scotland, the starting point is May 1992. It is not necessary to have owned a Mastercard at any point. The judgment ringfences £100 million for consumers, who will have until the end

of 2025 to claim. If the expected 5% of claimants – 2.5 million people – come forward, then they will receive £45 each. Article continues below Should fewer claimants come forward, payments

will be capped at £70 per claimant.