Legal fight over settlement share delays compensation for shoppers—even those who never used a Mastercard

Millions of Brits expecting compensation from Mastercard face further delays after a legal dispute erupted over how a landmark £200million settlement should be divided.

The long-running class action could see around 47 million people in the UK receive up to £70 each, following a legal battle that claimed consumers were overcharged on goods and services due to card processing fees between 1992 and 2008.

But payouts are now on hold as Innsworth, a litigation funder that bankrolled the case in return for a share of the winnings, challenges the Competition Appeal Tribunal’s ruling on how much it should receive. Innsworth alleges the tribunal made “a series of errors” and has filed a judicial review to increase its cut—potentially reducing the amount left for customers.

According to financial experts at MoneySavingExpert, this legal action will delay the launch of the claims portal and could further shrink the funds available to consumers. Until the case is resolved, the £100 million allocated for payouts remains in limbo.

The case was spearheaded by Walter Merricks, a former financial ombudsman, who launched the collective lawsuit back in 2016 under powers granted by the 2015 Consumer Rights Act. He claimed Mastercard overcharged retailers to process card payments, and that these inflated costs were passed on to customers—regardless of how they paid.

The case alleged that from 1992 to 2008, Mastercard’s processing fees distorted the market, costing shoppers billions in higher prices. Though Mastercard denied wrongdoing, it eventually agreed to settle for £200 million. Half of that amount—£100 million—was earmarked for payouts, with the remainder covering legal costs and fees.

Originally, Merricks had sought damages of up to £17 billion in what was one of the largest class actions in UK legal history. While the eventual settlement fell far short of that figure, consumer advocates still hailed it as a major win.

However, Innsworth’s challenge may now slash the average payout. Experts say that if just 5% of eligible claimants file for compensation, individual payments could be around £70. But if more people claim, or Innsworth takes a larger share, payouts could fall to as little as £45.

To qualify for the payout, claimants do not need to have ever used a Mastercard. The lawsuit argues that all shoppers paid inflated prices due to the fee structure—regardless of how they paid.

Eligibility criteria include:

• Living in England, Wales or Northern Ireland for three consecutive months between 20 June 1997 and 21 June 2008, or in Scotland between 22 May 1992 and 21 June 2008.
  
• Being aged 16 or older during that time.
  
• Making purchases for personal, not business, use.
  
• Living in the UK on 6 September 2016, when the claim was filed.
  

No proof of purchase is required, and eligible claimants will simply need to confirm their identity and provide basic personal details when the online portal—hosted by legal firm Epiq—finally goes live. The portal was due to launch this summer but now looks likely to be delayed until late 2025, depending on the court’s ruling.

Once launched, claimants will have until the end of 2025 to submit their applications. If deemed eligible, they can expect to receive compensation within 28 days of claim approval.

For those frustrated by the latest twist, Merricks has urged patience. “This is still a major victory for consumers,” he said previously. “We’re committed to ensuring people get what they’re owed.”