Published on
December 12, 2025
Visa and Mastercard are charging unlawful interchange fees. Some card processing fees are exorbitant and are known as Multilateral Interchange Fees. From hotels to restaurants and pubs to leisure venues, processing fees are crippling to hospitality merchants. Because of this, hospitality enterprises throughout the UK and the European Economic Area are encouraged to sign up for a group action.
Tribunal’s Ruling on Unlawful Fees
In June 2025, the UK Competition Appeal Tribunal issued a landmark judgment, declaring that certain default interchange fees set by Visa and Mastercard were in violation of EU competition laws. This ruling establishes a clear legal precedent, indicating that these fees were unlawful and laying the groundwork for compensation claims from businesses affected by these charges.
This ruling has significant implications for future cases, particularly those involving businesses that accept Visa or Mastercard payments. The tribunal’s decision supports the view that these fees were anti-competitive, providing a solid basis for the ongoing legal claim.
Businesses Affected by Unlawful Fees
The claim focuses on businesses in the hospitality industry that processed Visa and Mastercard payments in the UK and the EEA. These fees increased costs for merchants that rely heavily on card payments for daily transactions. Eligible businesses for the claim include a range of hospitality operators, such as:
- Hotels
- Restaurants
- Pubs
- Bars
- Leisure and entertainment venues
The fees targeted by the claim relate to default interchange charges, which have been a long-standing issue for businesses relying on card payments.
The Legal Action: Claim Structure and Funding
The collective legal action is being spearheaded by Hausfeld, a law firm with significant expertise in competition litigation, particularly involving Visa and Mastercard. Bench Walk Advisors is providing funding for the case, ensuring that participating businesses face no upfront costs.
Key aspects of the claim structure include:
- No upfront costs: Participating businesses do not need to pay for the legal proceedings.
- After-the-Event insurance: Coverage is provided for potential legal risks.
- Minimal involvement required: Once businesses are onboarded, the claim is managed by the legal team, with minimal operational involvement needed from the businesses.
- Transactional data collection: Participating businesses will need to provide their transaction data, which will be processed by payment specialists at BB Merchant Services.
This approach aims to make the legal process as straightforward as possible for businesses, ensuring that they can participate without significant disruption to their operations.
Eligibility Criteria
To participate in the claim, businesses must meet certain eligibility criteria. These include:
- Transaction history: Businesses must have processed Visa and/or Mastercard payments within the last six years.
- Annual turnover requirement: A minimum annual card turnover of fifty million euros is required.
- Settlement exclusions: Businesses that have previously reached settlements with Visa or Mastercard may be excluded from the claim, depending on the terms of those agreements.
It’s important for businesses to assess whether they meet these criteria before registering, as only those who meet the conditions are eligible to participate.
Registration Process
The registration process for businesses interested in joining the legal claim is straightforward. The organisers stress that the registration is:
- Confidential: The process will not be publicly disclosed, ensuring privacy for businesses registering their interest.
- Non-binding: Registering does not commit businesses to participate; it simply expresses interest.
- Quick and easy: The process takes under two minutes to complete.
Registration is open until December 19, 2025, so businesses have a limited time to express interest in joining the legal claim.
What’s Next for Affected Businesses?
Once businesses register, they will be onboarded into the claim process, and their transactional data will be collected for analysis. The legal team will manage all aspects of the case, from legal proceedings to data handling. Participating businesses can expect minimal disruption while being part of a significant legal effort that could lead to compensation for unlawful charges.
How Will the Compensation Work?
Should the claim be successful, affected businesses could receive compensation for the overcharges incurred due to the unlawful interchange fees. The compensation will depend on the total value of the transactions affected by the illegal fees, which could result in significant payouts for businesses that have processed large volumes of card transactions over the years.
This claim represents an opportunity for businesses in the hospitality sector to seek restitution for financial losses caused by anti-competitive practices.
Why Should Businesses Participate?
For many businesses in the hospitality industry, the rising costs of card payment processing have been a major financial burden. By participating in this claim, businesses can take action against the unlawful practices of Visa and Mastercard and potentially recover some of their lost revenue.
The claim presents an opportunity to address long-standing issues with interchange fees that have negatively impacted the financial stability of hospitality operators. With no upfront costs and minimal involvement required, businesses have little to lose by joining the collective legal action.
Conclusion: Don’t Miss the Deadline
All hospitality business across the UK and EEA who are eligible are advised to claim before 19 December 2025. accessing repayment for illegal visa and mastercard penalties may well prove to be repaid to businesses significantly. The claim has strong legal backing. It is an obvious claim for hospitality businesses to make.
