Visa (NYSE:V) and Mastercard (NYSE:MA) are confronting fresh legal challenges in the UK as a London tribunal has given the green light for collective lawsuits against the global payments processors over fees imposed on retailers.
The ruling paves the way for a new wave of legal actions against Visa and Mastercard concerning multilateral interchange fees, which merchants incur when customers make purchases using cards.
Both Visa and Mastercard are already embroiled in a slew of lawsuits in London, with hundreds of claimants pursuing legal action at the Competition Appeal Tribunal. This includes cases managed jointly by the tribunal.
In 2022, Commercial and Interregional Card Claims, a special purpose vehicle, initiated additional lawsuits against Visa and Mastercard, seeking compensation for allegedly excessive charges levied on merchants.
Initially, the tribunal declined to certify these cases under the UK’s collective proceedings regime, akin to class actions in the US. However, following the recent ruling, the cases have been certified, pending input from other relevant parties.
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