UK Businesses File £700m CAT Claim over Visa and Mastercard EEA Fees
UK businesses have initiated a £700 million claim against Visa and Mastercard in the Competition Appeal Tribunal (CAT) regarding alleged increases in interchange fees for transactions between the UK and the European Economic Area (EEA). The claim asserts that post-Brexit, interchange fees rose five-fold, imposing an estimated annual cost of up to £200 million on UK businesses.
This legal action highlights the growing concern among UK merchants about the financial impact of increased fees in the wake of Brexit. If successful, the claim could not only result in significant financial restitution for businesses but also prompt regulatory scrutiny over the card networks' pricing practices in this new post-Brexit landscape.
Key takeaways
- ▸UK businesses claim Visa and Mastercard raised interchange fees five-fold after Brexit.
- ▸The ongoing CAT claim is valued at £700 million.
- ▸Businesses estimate annual losses from these fee increases at up to £200 million.
Why this matters
This claim could reshape the competitive landscape for card networks operating between the UK and EEA, forcing Visa and Mastercard to reconsider their fee structures. A ruling in favor of the businesses may lead to lower costs for merchants, potentially boosting their margins and impacting consumer pricing in the long run.