Mastercard has reached an agreement in principle to settle a collective lawsuit brought on behalf of 46 million British consumers concerning card fees.
The global payments processor has agreed to a £200 million settlement fee, as reported by Reuters.
The lawsuit, led by consumer advocate Walter Merricks, represents approximately 46 million adults in the United Kingdom and centers on alleged excessive card fees charged by Mastercard. The case, which became the first mass consumer action to be approved in the UK in 2021, has undergone a lengthy legal battle spanning nearly five years, moving from the Competition Appeal Tribunal (CAT) to the UK Supreme Court and back.
In the latest phase of the case at the CAT, Mastercard and Merricks—acting as the representative of the claimant class—announced the agreement to settle the case, subject to the tribunal’s approval.
While the claim’s total value was previously stated by the claimants’ lawyers to be approximately £10 billion ($12.7 billion), sources familiar with the matter have confirmed that the settlement amount is around £200 million.
A Mastercard spokesperson commented, “We are pleased to have reached an agreement in principle to put this case behind us.”
Merricks also expressed satisfaction with the settlement, stating, “I am very pleased that after nearly nine years of litigation with Mastercard, I have agreed to a settlement that I believe will deliver meaningful compensation to class members who choose to come forward to participate in the distribution of the damages.”
