[BREAKING NEWS] Interchange Litigation: Supreme Court Finds in Favour of the Merchants in Resounding Victory17th June 2020
In a resounding victory for the merchant community, the UK Supreme Court has unanimously upheld the Court of Appeals’ previous ruling: concluding that the interchange fees set by Visa and Mastercard restricted competition in the payments industry.
With the merchants succeeding on all major issues, this leaves very little room for manoeuvre for the global schemes, Visa and Mastercard.
After years of economic and legal battle, this is a ground-breaking triumph for the merchant community – with retailers operating in the UK now having the opportunity to lodge their own claims against high interchange rates. This would be extremely welcome news at any time: but after many retailers have suffered significant revenue damage through the COVID-19 pandemic, the potential for a substantial cash boost will be more welcome than ever.
The ruling was passed down by the UK Supreme Court – however, there are clear ramifications for merchants in the U.S., and across the globe, who have also been subject to high interchange fees.
While the court’s legal ruling is clear, it’s now down to the Competition Appeal Tribunal to quantify the extent of merchants’ losses – and therefore the level of interchange that can now be reclaimed.
Based on claims going back to 2013, the maximum pay-out for UK merchants could be an estimated €17 billion if Visa and Mastercard fail to prove pass-through benefits. If European merchants then proceed, it could be as much as €68 billion (CMSPI estimate).
We’re supporting over 50 of the UK’s biggest retailers to calculate and substantiate the value of their claims – ensuring they have the evidence required to achieve a full rebate. Get in touch with our experts today to find out what you need to be doing now to maximise the value of your claim and take advantage of this opportunity.