Millions of cardholders could be eligible for a £70 payout from Mastercard after a settlement was agreed following a landmark class action lawsuit.
On Tuesday, the Competition Appeal Tribunal officially approved a settlement agreement which would see a total of £200 million paid out among consumers following a lawsuit that started back in 2016.
At the time, financial ombudsman Walter Merricks claimed that shoppers were charged higher prices due to fees wrongly levied on card transactions.
In total, over 46 million shoppers were reportedly ripped off because retailers applied higher fees to the products they were buying due to the Mastercard fee.
“The settlement that has today been finally approved represents a fair and just outcome for UK consumers,” Mr Merricks said.
“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.”
Eligible consumers could get between £45 and £70 as part of their payout, but you’ll need to make a claim first. Here’s what you need to know.
Merricks vs Mastercard: explained
Walter Merricks is a solicitor and former financial ombudsman who, in 2016, filed a class action lawsuit against Mastercard on behalf of 46 million British consumers. It is one of the biggest claims made in UK legal history.
He brought the landmark class action in front of the Competition Appeal Tribunal, claiming that Mastercard had charged retailers too much for payment fees between 1992 and 2008.
He argued that shoppers were eligible for compensation because those retailers then increased consumers' prices, meaning they footed the bill for the higher card fee. The original claim was for around £10 billion.
Although the Competition Appeal Tribunal initially dismissed his claim, a court of appeals later ruled in his favour, meaning the case could be heard. Throughout the next few years, there were multiple appeals and hearings as Mastercard challenged the rulings.
Although the case has taken almost ten years to conclude, in late 2024, Mr Merricks reached a settlement with Mastercard for £200 million - which is less than initially requested.
Then in 2025, the tribunal approved the settlement, with Justice Roth concluding: “Looking at the matter today we have no doubt that the settlement at £200 million, on the terms proposed, is just and reasonable.” The written decision was handed down this week.
Who is eligible for the Mastercard payout?
Mastercard users who bought things with their cards from businesses in England, Wales, or Northern Ireland between June 1997 and June 2008 might be eligible for the payout. You must have been over 16 at the time and a continuous resident of the UK for at least three months.
Eligibility will also vary depending on where you live. For people in Scotland, the starting point is May 1992.
For more information about eligibility, visit the FAQs here.
How can I claim and when?
It’s unclear exactly how the payout will be processed at this time, but some specifications you should know about that will impact the amount of compensation people receive.
Although the settlement amounts to £200m, £100m is ringfenced for “class members” or consumers, who have until the end of this year to make a claim.
If around 2.2 million people came forward to claim as anticipated, claimants would take home £45. However, if there are fewer claimants, the maximum payout is capped at £70 per person.
To stay up to date with the next steps, you’ll need to check this website and register your details. While you can’t register just yet, you can sign up to receive updates.
According to site: “UK consumers will shortly be able to register to receive a payment by completing a simple online form regardless whether they ever held a Mastercard card. It is expected that payments will be made to consumers who register before year end.
