Visa and MasterCard: Loss Before Britain’s High Court

Thursday, August 6th, 2020

Visa and MasterCard, the biggest credit-card companies in the world, have recently lost their bid concerning fee assessment on retailers in the UK. If you’re interested in additional details and want to know who can help you with payment-processing services in the UK, you’re at the right place.

Visa & MasterCard Case in Britain’s High Court

This case dates back to 1992. Retailers Sainsbury’s (SBRY.L), Morrisons (MRW.L) Asda (WMT.N), and Argos initiated the mentioned case with regard to the charges the payment giants levy on them when cardholders make a transaction. These fees are known as default multilateral interchange fees (MIFs).

The UK Supreme Court has justified the finding of the Court of Appeal. More specifically, this meant that the MIFs charges implied illegal restriction of competition laws existing in the EU and UK. Now, the Supreme Court has already announced that the appeal by the payment leaders is unacceptable and that the mandated payments put restrictions on competition.

What the Payment Giants Think

Let’s start with MasterCard. So, the company notes the decision isn’t a final ruling and other court hearings will be held aimed at figuring out the main issues. As for Visa, the company finds it disappointing that the Supreme Court hasn’t approved the previous high-court ruling and hasn’t agreed that its interchange fees put no restriction on the competition law.

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Consider applying to BestPaymentProviders.co.uk, a respectable merchant-processor comparison expert that can best help you with Visa and MasterCard. Best Payment Providers UK is dedicated to reviewing terms, complaints, and integration requirements of processors at the time of writing to guarantee the most trustworthy review of credit-card processing companies.

So, the UK Supreme Court’s decision grants victory to the British retailers involved in the case. Based on the court’s decision, the default “multilateral interchange fees” determined by the payment giants and charged put restrictions on competition.