On March 17, 2026 the London Court of Appeal ruled that Mastercard Incorporated and Visa Inc. may challenge a 2025 judgment that found their multilateral interchange fees violated competition law. The decision removes a legal barrier that could have forced the two payment giants to reduce or restructure the fees they charge merchants for card transactions, thereby preserving the current fee regime while the appeal proceeds.
In June 2025 the Competition Appeal Tribunal concluded that Mastercard’s and Visa’s multilateral interchange fees infringed UK and EU competition law both “by object” and “by effect.” The CAT ruling threatened to cut interchange fee revenue, a core component of both companies’ business models and a significant portion of their annual earnings.
Mastercard reported 2025 net revenue of $32.8 billion, net income of $15.0 billion, and an operating margin of 57.6%. Visa’s 2025 fiscal year ended with net revenue of $40.0 billion and GAAP earnings per share of $10.20. Interchange fees account for a large share of these revenues, so the CAT ruling posed a direct threat to the companies’ profitability.
Both Mastercard and Visa welcomed the Court of Appeal decision, emphasizing that interchange fees are essential to the digital payments ecosystem and provide benefits to consumers, merchants, and banks. The ruling is seen as a win for the companies’ ability to defend a core revenue stream.
The decision preserves the status quo while the appeal process unfolds. A U.S. settlement reached in November 2025 aimed to reduce interchange fees by roughly 0.10% over five years, indicating a broader trend toward lower fees globally. The outcome of the appeal could influence future regulatory and market dynamics for payment processors worldwide.
The ruling is likely to be viewed positively by Mastercard and Visa, while merchants may continue to face high interchange fees pending the appeal’s outcome.
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