Millions of consumers involved in a significant legal case against Mastercard have received an update this week. Walter Merricks, a former financial ombudsman, claimed that 46 million shoppers were overcharged due to incorrect fees on transactions from 1992 to 2008. These fees were paid by retailers accepting Mastercard payments, not by the customers themselves, making anyone eligible for compensation regardless of owning a Mastercard.
Approximately 2.3 million individuals are anticipated to step forward for claims, with £100 million set aside for payouts. Each claimant could receive £45 if all expected claims are made, with a maximum of £70 per person if fewer claims are submitted.
Although consumers have not yet been able to submit their information due to a delayed online claims portal after a legal dispute, Mr. Merricks revealed this week that the legal challenges have been resolved. Affected individuals are expected to begin the compensation claim process by the end of the year.
Mr. Merricks stated, “This paves the way for distributing over £100 million to consumers, the largest amount ever secured from group litigation for UK consumers.” He added that the claims process will launch in the coming months, with a nationwide awareness campaign and a 6-month claim registration period. The £100 million will be divided equally among claimants, with an expected minimum payout of £45, potentially reaching up to £70 per person depending on claim numbers, totaling between £90 and £140 for a couple.
Payments will be distributed after the six-month claim period, likely in the first half of 2027. Recipients can choose to receive the funds in their bank account or via an emailed gift voucher. Mr. Merricks is also considering allowing claimants to donate their compensation to charity.
To be eligible for compensation, individuals must have resided in England, Wales, or Northern Ireland for at least three months between June 1997 and June 2008 and made purchases from UK businesses accepting Mastercard credit cards. For residents of Scotland, the qualifying period begins from May 1992.