Visa and Mastercard's interchange fees have been deemed unlawful by a judicial decision.
The UK Competition Appeal Tribunal (CAT) has made a landmark decision, ruling that the default multilateral interchange fee (MIF) structures of Mastercard and Visa breach EU and UK competition law[1][2][3]. The ruling, which was unanimous, declares the MIF regimes as anticompetitive agreements, meaning the fees set by Visa and Mastercard are illegal.
This judgment is a significant win for merchants, who have been paying excessive, non-negotiable fees on every Visa or Mastercard transaction. The tribunal found that these fees acted as a forced minimum charge imposed on merchants by the card schemes via acquirers (merchant banks)[1][2].
Merchants may now seek remedies or damages for overpayment due to these unlawful fees, potentially leading to financial compensation and changes to the fee structures[1]. The ruling could pave the way for lower costs in card payments, which could trickle down benefits to consumers throughout the UK and EU.
Although the ruling primarily benefits merchants, consumers may also indirectly benefit because reduced interchange fees could lower the costs merchants incur when accepting card payments. Merchants may pass on these savings to consumers through lower prices or improved services[3].
Visa and Mastercard have indicated they will seek permission to appeal, so the final long-term impact may depend on higher court rulings[3]. However, the decision sets a precedent that reinforces regulatory oversight on payment card fee structures, pushing for greater transparency and fairness in how fees are set and passed on[1][2][3].
The case was part of the Umbrella Proceedings, a series of litigation by numerous merchants, which began in July 2022. The tribunal found that the inter-regional default MIFs and commercial card default MIFs also infringed, similar to the main MIF structure[1].
Kieron Beal KC, Philip Woolfe KC, Antonia Fitzpatrick, Oliver Jackson, Brian Kennelly KC, Jason Pobjoy, Isabel Buchanan, Ava Mayer, Sonia Tolaney KC, Matthew Cook KC, Owain Draper, and Veena Srirangam served as legal representatives in the case. Stephenson Harwood and Scott+Scott represented the claimants, while Linklaters and Milbank represented Visa, and Jones Day represented Mastercard[4].
Cian Mansfield, the London chief of Scott+Scott, stated that the judgment establishes Visa and Mastercard's conduct as anticompetitive and harmful, marking a decisive victory for merchants[4]. The ruling will have a direct impact on anyone who uses a Visa or Mastercard and businesses that accept them for payment.
References: [1] BBC News, "Mastercard and Visa fined £1.6bn over card fees", 27 June 2025,
The landmark ruling against Mastercard and Visa could result in financial compensation for merchants, who have been paying excessive, non-negotiable fees on Visa and Mastercard transactions. Lower costs in card payments, as a result of this decision, could potentially benefit consumers throughout the UK and EU.
