A landmark tribunal decision has paved the way for millions of UK consumers to receive up to £70 each following a settlement approval in a long-standing lawsuit against Mastercard. The case, initiated nearly a decade ago, was led by former financial ombudsman Walter Merricks, who claimed that excessive fees imposed on businesses by Mastercard resulted in inflated consumer prices.
Background of the Case
The tribunal ruled that between 1992 and 2008, Mastercard’s multilateral interchange fees unjustly affected pricing across various goods and services in the UK. Merricks argued that these fees, which retailers incurred for accepting Mastercard payments, were ultimately passed onto shoppers, resulting in overcharges. He estimated that these practices adversely affected around 46 million consumers in Britain.
The European Commission had previously determined in 2007 that Mastercard’s fee structure infringed competition law, establishing a foundation for Merricks’s legal challenge.
Eligibility for Compensation
Consumers may claim compensation if they resided in England, Wales, or Northern Ireland for at least three months between June 1997 and June 2008, provided they purchased goods or services from businesses accepting Mastercard. For Scottish residents, the eligibility period begins in May 1992.
The total settlement amount is £200 million, with £100 million specifically allocated for consumer compensation. If the projected 2.5 million claimants materialize, individuals who claim before the year ends could receive approximately £45 each. Should fewer claims be filed, individual payouts may be capped at £70.

Future Claim Process
Merricks has indicated that consumers will soon be able to register for their compensation through an online platform. His assertion underlines the importance of this ruling, stating that he pursued the case because he believed Mastercard’s fees imposed on retailers were “unlawfully high.” Merricks further noted, “Virtually all UK consumers had lost out… as retailers passed on those costs,” calling the approved settlement a “fair and just outcome” for affected shoppers.
Allocation of Unclaimed Funds
If not all compensation funds are claimed, the tribunal has announced that unclaimed amounts will be allocated to the Access to Justice Foundation. Clare Carter, the foundation’s chief executive, expressed her organization’s commitment to ensuring that any unclaimed funds will benefit charities focused on enhancing access to justice for disadvantaged individuals.
Official Response
Mastercard has refrained from commenting on the tribunal’s ruling, but the decision represents a significant moment in consumer rights and legal accountability. The Competition Appeal Tribunal’s approval marks a critical step towards redistributing compensation to consumers who have felt the impact of prolonged pricing issues stemming from Mastercard’s historical fee structures.
As consumers await the details of the claim process, the ruling reminds them of the legal avenues available to seek restitution for unfair business practices. The case highlights the broader implications for competition law and consumer protections in the financial services sector.
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