Martin Lewis, the financial expert and founder of Money Saving Expert, has issued a public alert urging millions of UK consumers to check if they are owed up to £70 from Mastercard.
His announcement on June 2 highlighted that compensation is available not only to those who have held a Mastercard but also to people who have never owned one.
According to the Manchester Evening News, this payout is part of a £200 million settlement Mastercard agreed to following a lengthy legal dispute over alleged breaches of competition law. Martin Lewis’s statement provided limited details but directed consumers to verify their eligibility through official channels.
Background and Legal Framework of the Mastercard Settlement
The legal dispute traces back to a decision made by the European Commission in 2007, which found that Mastercard had been charging unlawful multilateral interchange fees (MIFs) from 1992 to 2008.
These fees were levied on retailers accepting Mastercard payments, rather than directly on consumers, but they were subsequently passed on to shoppers in the form of higher prices. The case was initiated as a class action lawsuit in 2016, spearheaded by former financial ombudsman Walter Merricks.
Mr. Merricks’s lawsuit contended that approximately 46 million UK consumers had been overcharged during this 15-year period.
The legal challenge gained further traction following the Consumer Rights Act 2015, which introduced American-style group litigation procedures to UK competition law cases.
Recently, the Competition Appeal Tribunal approved the distribution method for the payout, allowing Mastercard to settle out of court. The total settlement of £200 million includes £100 million specifically ringfenced for consumers who are eligible to claim compensation.
Eligibility Criteria and Compensation Details
Consumers who lived in England, Wales, or Northern Ireland for at least three months between June 1997 and June 2008, and who purchased goods or services from UK businesses accepting Mastercard credit cards, qualify for compensation.
For residents of Scotland, the eligibility period begins earlier, starting from May 1992.
Importantly, it is not necessary to have personally owned a Mastercard at any point to be eligible. The settlement fund is expected to compensate millions of consumers, with individual payments estimated between £45 and £70.
If the expected 5% of claimants—approximately 2.5 million people—come forward to claim compensation, each will receive about £45. Should fewer claimants apply, the compensation per claimant will rise, capped at a maximum of £70.
Consumers will be able to register for compensation via an easy-to-use online form, and payments are anticipated to be made by the end of 2025.
Statements From Martin Lewis and Walter Merricks
Martin Lewis emphasized the importance of checking eligibility, stating:
Check now if you’re due up to £70 from Mastercard — even if you’ve NEVER had one. Millions are in line for compensation after the card firm settled a landmark legal case against it out of court.
Walter Merricks explained the rationale behind the lawsuit and the settlement:
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.
He added a clarification based on evidence gathered during litigation:
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.
Implications and Next Steps for Consumers
This case highlights the indirect effect that payment processing fees can have on consumer prices and demonstrates how legal mechanisms are increasingly available for collective consumer redress in the UK.
The introduction of group actions under the Consumer Rights Act 2015 has made landmark settlements like this possible.
Eligible UK consumers are encouraged to act promptly and use the forthcoming online claim portal to secure their share of the £100 million fund reserved for them. The deadline for claims is the end of 2025, allowing ample time for consumers to participate.
Given the number of potentially affected shoppers and the significance of the payout, this development marks a notable moment for consumer protection in financial services and retail sectors. It also serves as a reminder of the broader consequences of card payment fees on everyday prices.
Those who believe they may be eligible can find detailed guidance on the Money Saving Expert website to assist with the claims process. This settlement provides a rare opportunity for UK consumers to recover funds linked to historic pricing practices and breaches of competition law.
