Recently, the UK’s Competition Appeal Tribunal (CAT) declared Visa and Mastercard‘s multilateral interchange fees (MIFs) violate European competition law. This groundbreaking verdict from June 2025 shines a spotlight on the ongoing scrutiny of payment processing fees.
This pivotal verdict intensifies the legal and regulatory focus on the payment processing industry. Notably, it puts the spotlight on the fees major card providers charge. Indeed, Visa and Mastercard’s MIFs have undergone rigorous inspection.
MIFs are fees that the card-issuing bank charges the retailer’s bank for each card transaction. These fees often affect retailers and, consequently, consumers. The CAT’s decision emphasizes these fees breach European competition law, marking a major regulatory shift.
Aftermath of the Verdict
The verdict highlights the importance of compliance with competition law, not only in the UK but across the European economic area. Global payment processors Visa and Mastercard will certainly feel the impact of this decision.
Moreover, the verdict could empower retailers to reclaim the fees these card providers charge. Retailers have consistently argued that the MIFs are excessive and disadvantageous. Now, with the CAT’s verdict, they have legal support for their arguments.
This decision also sets a precedent for other payment processors and financial institutions. They must reassess their fee structures to avoid violating competition laws. This could foster a more equitable environment in the payment processing industry, benefitting both retailers and consumers.
Although the CAT’s verdict directly targets Visa and Mastercard, it sends a potent message to all financial sector players. Compliance with competition laws is crucial, and any violation could lead to serious legal and financial penalties.
In conclusion, this verdict is a significant milestone in the ongoing scrutiny of payment processing fees. It impacts not just Visa and Mastercard, but also has broad implications for other financial institutions and the entire retail sector.
