Millions of Mastercard holders are set to receive up to £70 each following the final approval of a £200 million settlement against the payment card provider.
The Competition Appeal Tribunal gave its final approval on how the settlement should be distributed on Tuesday following the class action against Mastercard, which dates back to 2016.
Walter Merricks, the former financial ombudsman, launched his claim after the European Commission ruled in 2007 that Mastercard’s “multilateral interchange fees” charged to businesses had since 1992 infringed competition law.
He alleged that 46 million shoppers in Britain were ripped off after fees were wrongly levied on transactions made over a 15-year period between 1992 and 2008.
The fees were paid by retailers accepting Mastercard payments, rather than by consumers themselves.
But Mr Merricks claimed shoppers had lost out as retailers passed on these fees in the form of higher prices.
It followed the arrival of the Consumer Rights Act 2015, which allowed for US-style class actions in UK competition claims.
A statement from Mr Merricks said millions of UK consumers who are part of the class action could now come forward and claim their share of the £200 million, with individuals potentially getting between £45 and £70 each.
He said UK consumers would shortly be able to register to receive a payment by completing a simple online form, regardless of whether they ever held a Mastercard card.
It was expected that payments would be made to consumers who register before the end of the year, he added.
Commenting on the outcome, Mr Merricks said: “I started this case because I believed that Mastercard’s fees paid by retailers for processing card transactions had been unlawfully high and virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as retailers passed on those costs.
“As the evidence came to be known through the litigation process, this was the position only in a relatively small proportion of transactions and the settlement reflects that.
“The settlement that has today been finally approved represents a fair and just outcome for UK consumers.
“On any view, recovering £200 million by way of a settlement for UK consumers is a huge sum, and that will translate into a meaningful impact in the pockets of UK consumers.”
