Mastercard and Visa win right to appeal UK fee ruling

The Court of Appeal in the United Kingdom has granted Visa Inc. and Mastercard Incorporated permission to challenge a ruling that their merchant fees breach competition laws. This decision follows a long-running legal battle over the default multilateral interchange fees (MIFs) charged to retailers.

Last year, the Competition Appeal Tribunal ruled in favor of hundreds of merchants, finding that the fees infringed upon European competition law. Legal representatives for the claimants noted at the time that this was the first instance where commercial card and inter-regional fees were found to be in violation. However, the appellate court's decision on Tuesday allows the payment processors to contest that finding.

Both companies welcomed the ruling, asserting that the fee system is a fundamental part of the digital economy. Visa and Mastercard stated in separate communications that interchange fees play an important role in the digital payments ecosystem and provide benefits to consumers, businesses, and banks.

Cian Mansfield of the law firm Scott+Scott, which represents the merchants, stated that the claimants are prepared for the next stage of the legal process.

We are confident that we will resist the application successfully at the substantive appeal.