Millions of UK consumers could receive up to £70 each after the Competition Appeal Tribunal approved a £200m settlement in a longstanding legal case against Mastercard.

The lawsuit relates to transaction fees charged to businesses between 1992 and 2008, which are believed to have resulted in higher prices for shoppers.

Settlement follows decade-long legal battle

The legal action was initiated nearly ten years ago by former financial ombudsman Walter Merricks, who argued that Mastercard's multilateral interchange fees infringed competition law.

These fees were charged to retailers each time customers made purchases using Mastercard credit cards. Although consumers did not pay the fees directly, Merricks contended that the charges were passed on to them through increased retail prices.

In 2007, the European Commission ruled that the fees had breached EU competition rules since 1992. This finding laid the groundwork for Merricks’ class action, which ultimately led to Tuesday’s tribunal approval.

Who can make a claim and how much is available

The approved settlement allocates £100m specifically for consumer claims.

Individuals may be eligible for compensation if they lived in England, Wales or Northern Ireland for at least three months between June 1997 and June 2008, and purchased goods or services from UK retailers that accepted Mastercard.

For Scottish residents, eligibility starts from May 1992.

Consumers will be able to submit claims via an online portal expected to launch soon. If 2.5 million people – around 5% of those eligible – submit a claim, each would receive £45. However, if fewer people claim, payments could rise to a maximum of £70.

Unclaimed funds to support legal aid charities

Any unclaimed money from the settlement will be allocated to the Access to Justice Foundation.

 The foundation has stated that it is already coordinating with partners to ensure the funds benefit charities focused on improving access to legal services for vulnerable groups.

Clare Carter, chief executive of the foundation, welcomed the development, highlighting the potential impact on community-based legal support initiatives across the country.

Mastercard declined to comment on the ruling. Mr Merricks said the outcome provides redress for what he believes was a systemic overcharging of nearly every UK shopper over a 15-year period.