Millions of shoppers awaiting compensation from a landmark case against Mastercard have received an update this week. The company has agreed to settle the claim, and legal challenges have been dropped, paving the way for payments.
Background of the claim
Walter Merricks, a former financial ombudsman, argued that 46 million shoppers were overcharged due to fees wrongly levied on transactions between 1992 and 2008. These fees were paid by retailers accepting Mastercard, not by customers directly, so you don't need to have owned a Mastercard to be eligible.
Around 2.3 million people are expected to come forward, with £100 million ringfenced for consumers. If all claim, each person would receive £45; if fewer claim, the maximum could rise to £70 per person.
Update on the claims process
The online claims portal was delayed due to a legal challenge, but Mr Merricks announced this week that the legal claims have been dropped. Affected individuals will be able to start claiming by the end of this year.
Mr Merricks said: "This finally opens the way for me to prepare for distribution of at least £100m to consumers. This is presently the largest amount ever secured from group litigation for the benefit of UK consumers."
How to claim and payment details
Mr Merricks added: "When we are ready to launch (which will be in the coming months) there will be a nation-wide publicity campaign to alert people and a 6-month period during which people will be able to register their claim. The £100m will be divided equally between the people who claim, and the expectation is that consumers should get a minimum of £45, which could rise to as much as £70 depending on the numbers that claim. So for a couple this could be between £90 and £140."
Payments will be made after the six-month period ends, expected in the first half of 2027. Consumers can receive payment via bank transfer or an emailed gift voucher, with an option to donate to charity.
Eligibility criteria
You may be eligible if you lived in England, Wales, or Northern Ireland for at least three months between June 1997 and June 2008, and bought goods or services from UK businesses that accepted Mastercard credit cards. For Scotland, the period starts in May 1992.
