Billions of pounds could be flowing back to UK retailers if a law suit against Mastercard and Visa over “unlawful” and “anticompetitive” interchange fees wins at an upcoming trial. 

MIF is the fee a retailer’s bank must pay to a consumer’s bank for each card payment, which banks then pass on to businesses. It claims that for every £100 transaction, £1.60 is unlawfully charged by the credit card giants. 

Stephen Allen, director of the Class Representatives said: “MIFs are like a tax on retail businesses, increasing the cost of accepting commercial card payments. This claim enables justice for years of retailers being squeezed by these global card schemes.” 

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Last year, after a successful hearing before the Competition Appeal Tribunal, the action was given the go-ahead to proceed to trial. 

Retailers with a turnover of less than £100 million are automatically included, but can opt-out. However, compensation can only be given to those who are registered.  

The claim runs from June 2016 to the present. If successful, damages will continue to accrue until the date of judgement or settlement. The action is free for retailers join, and claimants pay nothing if it is unsuccessful.

Jeremy Robinson, partner at commercial litigation firm Harcus Parker said: “Class action litigation is the best way to ensure Mastercard and Visa stop these unlawful charges on businesses.” 

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