Two mammoth class actions against Mastercard and Visa will be heard together at a trial in November to resolve common issues about whether retailers passed on the credit and debit card giants’ fees to consumers, a London tribunal has ruled.
Visa and Mastercard Trials Hearing : Tribunal Ruling
The Competition Appeal Tribunal (CAT) ruled on Friday that a £10 billion ($12.7 billion) consumer group action claim against Mastercard can be considered alongside a group of retailers suing both Mastercard and Visa over their interchange fees. The aim is to collectively decide issues concerning the “passing on” of allegedly unlawful fees.
Despite the minimal overlap between the two cases, the tribunal determined that hearing them together would prevent inconsistent rulings. Evidence related to passing on will be heard at a hearing at the end of 2024, with closing submissions scheduled for 2025.
“It seems to us that the most natural case management solution is to grant the application,” CAT Judge Marcus Smith said. “We are also confident that we have the ability to manage preparations for the timetable to trial (and the timetable itself) so that all parties have a fair opportunity to present their case.”
Visa and Mastercard Trials Hearing : Background on Fees
The fees, known as multilateral interchange fees, are paid by businesses to their acquiring lenders to accept payment by debit or credit card. These fees are estimated to constitute up to 90% of the monthly bank charge of a typical business.
