On 20 May 2025, the Competition Appeal Tribunal issued its decision regarding a lengthy class action lawsuit against Mastercard related to its interchange fees. The ruling details the distribution of a 200 million pound settlement that was announced in February.

The settlement, which was approved by class representative Walter Merricks and Mastercard, faced opposition from Merricks’ litigation funder, Innsworth Capital, who argued that the settlement sum was insufficient and subsequently initiated arbitration against him. Under the terms of the agreement, Mastercard has committed to providing Mr. Merricks with a 10 million indemnity to assist with his defense costs against the funder.

The Tribunal expressed complete satisfaction with the fairness and reasonableness of the settlement terms, ultimately determining that the settlement should be approved. The chances of achieving a judgment exceeding 200 million pounds were deemed low. Additionally, the personal indemnity to Mr. Merricks did not influence the Tribunal’s assessment of the settlement, considering the unique circumstances of this case.

With the final approval of this settlement, millions of consumers in the UK are eligible to receive up to 70 pounds each. Merricks stated that the settlement signifies a fair and just resolution for UK consumers, emphasizing that recovering 200 million pounds for consumers is a notable accomplishment.

Merricks, a former financial ombudsman, initiated the lawsuit in 2016, alleging that Mastercard charged excessive interchange fees—costs incurred by retailers when customers use credit cards—which were ultimately transferred to consumers through higher retail prices.