Millions of shoppers in the UK could receive up to £70 each following a tribunal’s approval of a settlement in a long-running lawsuit against Mastercard. The case originated from historic fees imposed on businesses by the card provider, which were ultimately passed on to consumers through higher prices.
The legal battle, spanning nearly a decade, was initiated by former financial ombudsman Walter Merricks. He argued that from 1992 to 2008, Mastercard levied unlawful fees on transactions, causing consumers to pay more for goods and services even though they did not directly own a Mastercard.
Consumers can claim compensation if they lived 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. For residents of Scotland, eligibility starts from May 1992.
The total settlement is valued at £200 million, with £100 million set aside specifically for consumers. Those who claim before the end of the year could receive approximately £45 each if the expected 5% of eligible claimants—about 2.5 million people—participate. If fewer people apply, the payout may increase to a maximum of £70 per claimant.
Background of the Case
Walter Merricks filed the claim after the European Commission determined in 2007 that Mastercard’s “multilateral interchange fees” charged to retailers violated competition laws since 1992. Although retailers paid these fees, the charges were effectively passed on to consumers through increased prices.
Merricks estimated that 46 million UK shoppers had been overcharged during this period.
Any unclaimed settlement funds will be directed to the Access to Justice Foundation, a charity focused on improving access to justice. Clare Carter, the charity’s chief executive, confirmed efforts are underway to ensure the money benefits those in need.
Merricks described the settlement as a “fair and just outcome” for UK consumers. He emphasized that the case was rooted in addressing what he believed were unlawfully high fees paid by retailers, which ultimately impacted virtually all consumers in the UK over many years.
Mastercard declined to comment on the ruling.
What The Author Thinks
While this settlement brings relief to millions of UK shoppers, the process underscores how hidden costs in the supply chain often end up burdening everyday consumers. It’s a reminder that transparency in fees and charges is essential to protecting consumer interests. The £70 payout may not fully compensate for years of overpayment, but it sets a precedent that large corporations must be held accountable for practices that indirectly inflate prices. Greater regulatory oversight and clearer communication about such fees could prevent similar situations in the future.
