On March 17, 2026, the London Court of Appeal granted Visa Inc. and Mastercard Inc. the right to appeal a judgment that found their default multilateral interchange fees infringed UK competition law. The ruling allows the two card networks to challenge the UK regulator’s determination that the fees violate the Competition Act, preserving their ability to defend the fee structure in a key European market.
The decision follows a June 2025 ruling by the Competition Appeal Tribunal (CAT) that the default interchange fee rule—charging a fee on every transaction—breaches UK and Irish competition law “by object,” meaning it is considered inherently anti‑competitive without needing to assess its effects. The CAT’s earlier judgment was a major victory for merchants who argue that the fees are excessive and harm competition. The Court of Appeal’s permission to appeal keeps the legal battle alive and keeps the regulatory outcome uncertain for Visa and Mastercard.
Interchange fees are a core revenue stream for card networks and issuing banks, paid by a merchant’s acquiring bank to the cardholder’s issuing bank for each transaction. The ability to appeal could allow Visa and Mastercard to maintain the fee structure that underpins a significant portion of their earnings. Merchants, however, contend that the fees are anti‑competitive and contribute to higher costs for businesses, a view that has driven the regulatory scrutiny and the CAT’s rulings.
Additional regulatory context includes the UK Payment Systems Regulator’s (PSR) authority to set price caps on cross‑border interchange fees, confirmed in a January 2026 High Court decision that rejected a challenge by Visa, Mastercard and Revolut. The PSR has estimated that post‑Brexit increases in these fees cost UK businesses an additional £150‑200 million annually. A February 2026 CAT judgment in the Merchant Interchange Fee Umbrella Proceedings found that merchants absorbed almost the entire cost of unlawful card charges, removing a hurdle for substantial damages awards.
A Visa spokesperson said the company “continues to believe that the fees are a ‘critical component’ for maintaining a secure digital payments ecosystem.” Mastercard did not immediately respond to a request for comment.
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