How you could claim a £70 payout from Mastercard, even if you've never had one

Millions of shoppers could be eligible for a payout of up to £70 after a final agreement for a £200 million settlement was reached by the Competition and Appeal Tribunal.

The settlement comes from a class action dating back to 2016 which alleged around 46 million consumers in the UK faced higher costs as a result of Mastercard unfairly charging businesses.

UK consumers will shortly be able to register to receive a payment by completing a simple online form, regardless of whether they ever held a Mastercard card.

So are you eligible and how can you apply for the payout?

Millions are entitled to make the claim whether they held a Mastercard card or not. / Credit: PA

Why does Mastercard owe consumers?

The agreement to pay consumers stems from a class action lawsuit brought in 2016 by Walter Merricks, the former financial ombudsman.

Mr Merricks pointed to a European Commission ruling in 2007 that Mastercard had, since 1992, been infringing competition law by charging retailers to take payments via Mastercard in what they called “multilateral interchange fees”.

These fees were paid by retailers, not consumers, but he alleged that around 46 million shoppers had been affected by this as shops passed these fees onto consumers through higher prices.

Who is eligible to make a claim?

UK consumers will shortly be able to register to receive a payment by completing a simple online form, regardless of whether they ever held a Mastercard card.

To be eligible, consumers must have lived in England, Wales or Northern Ireland for at least three months between June 1997 and June 2008, and have bought goods or services from UK businesses that accepted Mastercard credit cards.

You also have to have been aged 16 or over during this time.

The same rules apply to Scotland, but with a slightly later starting point of May 1992.

The judgment ringfences £100 million for consumers, who will have until the end of 2025 to claim.

If the expected 5% of claimants, 2.5 million people, come forward, then they will receive £45 each. Should fewer claimants come forward, payments will be capped at £70 per claimant.

Consumers will shortly be encouraged to register if they are eligible to receive a payout when they are made. / Credit: iStock

What has the official behind the lawsuit said?

Commenting on the outcome, Walter Merricks said: “I started this case because I believed that Mastercard’s fees paid by retailers for processing card transactions had been unlawfully high and virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as retailers passed on those costs.

“As the evidence came to be known through the litigation process, this was the position only in a relatively small proportion of transactions and the settlement reflects that.

“The settlement that has today been finally approved represents a fair and just outcome for UK consumers.

“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.”