United Kingdom

UK Consumers to Get £70 in Landmark Mastercard Settlement

Published MAY 21 2025

Story

Above: Image credit: SOPA Images/Contributor/LightRocket via Getty Images

The Facts

The U.K.'s Competition Appeal Tribunal has given final approval for a £200 million ($268.3 million) settlement against Mastercard, concluding a class action lawsuit initiated in 2016 by former financial ombudsman Walter Merricks over allegedly unfair card transaction fees charged between 1992 and 2008.
The Standard
LBC
The settlement will provide compensation to approximately 46 million UK consumers who lived in England, Wales, or Northern Ireland for at least three months between June 1997 and June 2008, or in Scotland from May 1992, regardless of whether they owned a Mastercard.
PYMNTS
BBC News
The first £100 million is set aside for consumer compensation, with individual payments expected to be £45 if the anticipated 2.5 million people (5% of eligible claimants) come forward, or up to £70 per person if fewer claims are made.
Legal Futures
The Standard
The fees were originally paid by retailers accepting Mastercard payments, but Merricks argued these costs were passed on to consumers through higher prices, following a 2007 European Commission ruling that Mastercard's fees had violated competition law.
PYMNTS
BBC News
Consumers can claim their share through an online form, with the deadline for claims set at the end of 2025. Any unclaimed funds will be donated to the Access to Justice Foundation.
Globallegalpost
The Standard
The settlement represents a significant reduction from the original £14 billion claim, leading to a dispute between Merricks and litigation funder Innsworth, with Mastercard providing Merricks a £10 million indemnity against potential legal action from Innsworth.
Legal Futures
www.ft.com

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

The settlement marks a historic victory for consumer rights in the U.K., delivering meaningful compensation to millions of shoppers who were overcharged due to unlawful card fees. This groundbreaking case demonstrates how collective action can hold large corporations accountable and secure justice for consumers, even if it takes years of persistent legal effort.

PYMNTS

The Standard

Narrative B

The settlement amount of £200 million is disappointingly low compared to the original £14 billion claim, potentially deterring future litigation funders from backing similar consumer protection cases. The reduced payout of £45-70 per person represents a tiny fraction of the estimated consumer losses, raising questions about the effectiveness of the U.K.'s collective action system.