Mastercard and Visa face a new collective action lawsuit in the U.K. The suit seeks over £700 million in damages. It represents approximately 126,000 businesses.
Filed at the Competition Appeal Tribunal, the claim alleges the payment giants charged unlawfully high interchange fees. These fees applied to transactions from European Economic Area (EEA) customers following Brexit.
The lawsuit contends Visa and Mastercard raised fees for cross-border transactions between the U.K. and EEA. This occurred after the U.K. left the European Union. Fees increased by as much as fivefold.
EU law capped these fees before Brexit.
The legal action seeks compensation for UK businesses. These businesses accepted online payments from EEA-issued cards since October 2020.
Mastercard states it strongly disagrees with the claim's basis.