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Mastercard has settled a class action claim brought by more than 1,900 businesses in the ongoing Mastercard Fee Group Litigation over allegations it imposed excessively high credit card fees on merchants, a person familiar with the case has confirmed.

The settlement involves a group of claimants represented by Stephenson Harwood LLP. First reported by the Global Legal Post, the resolution does not affect the merchants' parallel proceedings against Visa or other retailers suing Mastercard in the "umbrella litigation," according to the source.

Mastercard Fee Group Litigation : Impact on Parallel Proceedings

Counsel for the Stephenson Harwood businesses did not return requests for comment before publication.

Thousands of retailers are suing Mastercard and Visa for reimbursement of "unlawful" multilateral interchange fees, which businesses pay to their acquiring banks to accept debit or credit card payments. These fees are estimated to constitute up to 90% of a typical business's monthly bank charge.

The claims were initiated following separate rulings by the European Commission and U.K. Supreme Court, which found that the card giants charged unlawful fees. These rulings have spurred claims from hospitality companies and class actions representing various businesses burdened by these charges.

Umbrella Proceedings and Liability Trial

The cases are proceeding as a group action after the Competition Appeal Tribunal decided that the individual claims could be managed collectively in umbrella proceedings.

In a liability trial in February, merchants argued that the interchange fees violate antitrust laws because they "are not a freely negotiated price." The court has yet to issue a ruling on this phase of the case, which is one of three distinct phases in the litigation.

Consumer Claims and Representation

In a separate action, consumers represented by solicitor Walter Merricks claim that they paid higher prices in stores between 1992 and 2008 due to excessively high swipe fees charged by Mastercard, which retailers passed on to customers.

The merchants in the Mastercard Fee Group Litigation are represented by Kieron Beal KC of Blackstone Chambers, Oliver Jackson of 11KBW, and Philip Woolfe KC and Antonia Fitzpatrick of Monckton Chambers. The legal team is instructed by Genevieve Quierin, Donna Newman, and Chris Pettett at Stephenson Harwood LLP, along with Belinda Hollway, Cian Mansfield, and Alice Bernstein at Scott+Scott LLP.

Mastercard's defense is led by Sonia Tolaney KC and Matthew Cook KC of One Essex Court, instructed by Nick Cotter at Jones Day.