Bench Walk backs £5 billion UK class actions against Visa and Mastercard

Bench Walk Advisors is funding two proposed collective actions against Visa and Mastercard seeking approximately £5 billion in compensation for UK businesses allegedly overcharged on card payment fees, adding to a growing portfolio of competition claims against the payment networks.

The proceedings, filed with the Competition Appeal Tribunal (CAT) on October 26, challenge multilateral interchange fees imposed on consumer debit, credit and prepaid card transactions between October 23, 2020 and October 23, 2026. The claimants allege that the fee arrangements restricted competition and forced businesses to pay more than they would have in a competitive market.

The actions are being brought by Commercial and Interregional Card Claims I Limited and Commercial and Interregional Card Claims II Limited, both directed by Stephen Allen, a former travel industry executive who has been pursuing interchange fee litigation against the payment networks since 2021.

Harcus Parker and Hausfeld are acting for the proposed class representatives, with the proceedings structured to accommodate businesses of different sizes.

Hausfeld is pursuing an opt-out action covering approximately one million UK businesses, charities and other organisations with annual group turnover below £100 million during the relevant qualifying period. Eligible businesses would be included automatically if the CAT certifies the proceedings, unless they elect to opt out.

Harcus Parker is pursuing a parallel opt-in action for businesses with annual group turnover of £100 million or more. Businesses that have already brought or settled claims relating to the relevant consumer card fees would be excluded.

The claims focus on interchange fees set by Visa and Mastercard and paid by merchants indirectly through their acquiring banks. These fees account for a substantial portion of the charges businesses incur when accepting card payments, and the claimants contend that the arrangements have resulted in widespread overcharging.

The proceedings follow a separate proposed collective action filed earlier in October seeking more than £700 million in compensation for approximately 126,000 UK businesses over cross-border interchange fees on transactions involving cards issued in the European Economic Area.

Mastercard has rejected the latest claims, defending interchange fees as essential to the functioning of the payments system and criticising the proceedings as an example of “opportunistic funder-backed litigation”. The company also pointed to proposed UK government reforms of the collective actions regime, arguing that the litigation reflects the type of claims those reforms are intended to address.

Visa has similarly defended interchange fees, maintaining that they support secure and efficient payments for merchants, consumers and financial institutions.

The proposed actions remain subject to certification by the CAT, which must determine whether they can proceed as collective proceedings. The estimated £5 billion in compensation has not been established by the tribunal, and liability remains contested.