£300 million sought in damages as retailers take on Mastercard

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Mastercard

Retailers including a major supermarket chain are bringing legal action against Mastercard and Visa amid a processing fees row.

20 high street firms have launched a legal challenge against the credit card giant, hiring law firm Humphries Kerstetter to seek £300 million in damages.

The challenge relates to alleged losses they acquired from fixed interchange fees, a small sum charged to retailers every time a card transaction takes place.

Tesco and WH Smith recently won a similar case, securing a settlement on interchange fees while Sainsbury‘s won a £68 million case against Mastercard last summer.

READ MORE:  MasterCard pays Tesco $61m over transaction fees

Humphries Kerstetter have not revealed the companies involved, but stated those involved were known high street brands including retailers, restaurants and betting shops. It added that a “large number” more were considering joining the group.

Interchange fees are the focal point of a lengthy dispute between retailer‘s and card companies after the European Commission voiced concerns over fixing costs, leading to a cap on interchange fees permanently.

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