a day ago
How to get up to £70 compensation from Mastercard, even if you've never paid with one
Millions of people in the UK could be entitled to claim compensation from Mastercard – even if they have never used one of the payment provider's cards.
Following a group legal claim against the company regarding transaction fees, a resulting £200m settlement means millions of people who were making card transactions in the UK during the 1990s and 2000s could be due compensation.
Here, Telegraph Money explains who could be eligible for a payment and what you need to do to claim.
Why is Mastercard paying compensation?
How much compensation could be available?
Who is eligible?
How to submit a compensation claim
Compensation scams – be on your guard
Why is Mastercard paying compensation?
Mastercard's £200m settlement is the result of a long-running legal case initiated by the former financial ombudsman, Walter Merricks, in 2016 at the Competition Appeals Tribunal in London.
Mr Merricks argued that in the years between 1992 and 2008, shoppers were being overcharged as a result of Mastercard's high transaction charges.
Mastercard provides the technology that enables shoppers to make fast, secure card payments, and it charges retailers fees to use its services.
Mr Merricks said retailers then effectively passed those high charges on to consumers in the form of higher prices in the shops.
It's the largest settlement of a group claim in the UK. Nonetheless, it remains substantially less than the £10-£17bn Mr Merricks claimed shoppers were owed.
Although the settlement between Mr Merricks and Mastercard was agreed in 2024, it was only approved by the Competition Appeals Tribunal in May.
Commenting on the agreement, Mr Merricks said: 'I am very pleased that after nearly nine years of litigation with Mastercard, I have agreed a settlement that I believe will deliver meaningful compensation to class members who choose to come forward to participate in the distribution of the damages.
'Ever since I began my claim, I have aimed to ensure that the new regime for collective redress can be seen to work effectively and to do that, I had to take my case to the Supreme Court.'
How much compensation could be available?
This will depend on how many people come forward to make a claim, as there is a certain amount being set aside for compensation payments.
Of the £200m settlement package, £100m has been ring-fenced for shoppers' compensation payouts.
Although it is claimed that as many as 46 million consumers were affected by Mastercard's high charges, MoneySavingExpert has reported that only 5pc of eligible people are expected to claim. If that prediction is accurate, claimants can expect a £45 payout.
However, if fewer people submit a claim, you could get as much as £70 (the maximum permitted in the settlement).
The remaining £100m will be used to cover legal fees, a return for the litigation funder, and anything left over may fund further consumer payments and, potentially, a contribution to The Access to Justice Foundation.
Who is eligible?
To be able to claim, you'll need to meet all of the following criteria:
You were living in the UK, for at least three consecutive months, between June 20 1997 and June 21 2008. If you live in Scotland, there's a larger window – ranging from May 22 1992 to June 21 2008.
You were aged 16 or over during this period.
You purchased goods or services in the UK during this time for non-business purposes – although proof of this won't be required.
You were still living in the UK on Sept 6 2016 (the date the claim against Mastercard was filed).
It doesn't matter whether you have used a Mastercard debit or credit card or not – this is because Mr Merricks argued that the company's high transaction fees hit all shoppers, irrespective of which card payment provider they used.
If you were under 16 during those years, you won't be able to claim because it's argued that you would have been less likely to have been spending your own money.
How to submit a compensation claim
To be in with the chance of a payout worth up to £70, you'll need to submit a claim.
The legal services firm, Epiq, is expected to launch an online claims portal at some point over the next few weeks on the Mastercard Consumer Claim website.
Eligible consumers will then have a number of months to complete a claim online.
The process is not expected to be complicated – claimants will simply have to state that they meet the criteria and provide details including date of birth, home address and bank details (so that the payment can be made electronically).
There will also be no expectation for claimants to provide any evidence to support their claim.
According to the claims website, payments will be made before the end of 2025.
Compensation scams – be on your guard
Beware of any communication or social media post that's telling you to claim now – the online claims portal is not yet live, so it's highly likely to be a scam.
Fraudsters love to use compensation schemes as a hook for a scam – for example, there have been numerous bogus websites suggesting they can help the so-called Waspi women claim £2,950 compensation (the amount recommended by the Parliamentary and Health Service Ombudsman), despite the Government ruling out any such payments to date.
