Why did you launch this class action?
This action seeks justice for businesses that have been illegally overcharged for payments made with commercial cards. In this article we will explain :
- the reasons for the commercial card claim,
- Harcus Parker’s objective
- and how businesses can join this class action against Visa and Mastercard.
Mastercard and Visa are accused of violating competition law. Complaints have been made to the Competition Appeal Tribunal (CAT). The CAT specialises in competition law. The complaints have been filed on behalf of all companies that accept card payments.
How does billing between Visa and Mastercard and merchants work?
When a customer makes a card payment at a merchant, the merchant’s bank pays a “multilateral interchange fee” or “MIF” to the cardholder’s bank. This fee represents the bulk of the service fee charged by the merchant’s bank to the merchant for accepting the card payment. This increases costs for merchants.
It should be noted that the MIF is a percentage of the value of the transaction, but it is not set unilaterally by the banks based on the competition in the market. It is set by the card schemes, Mastercard and Visa, and imposed on the banks as a condition of their participation in the scheme. It is the merchant’s bank that pays the MIF and then passes on the fee to its customers, the business owners.
What are the consequences for the businesses concerned?
The reason for the commercial card claim is simple: many businesses have experienced excessive and unfair transaction fees on credit and debit card payments. These fees have a significant impact on the bottom line of businesses, particularly those that accept high value commercial card payments. According to law firm Harcus Parker, financial giants Visa and Mastercard have abused their dominant market position by setting unfairly high transaction fees, resulting in additional costs for businesses. Furthermore, the two financial giants have never justified this overcharging.
What is the objective of the law firm Harcus Parket with this class action?
Harcus Parker’s goal with this class action is to recover the excessive transaction fees that the companies unfairly paid. The law firm also wants to pressure Visa and Mastercard to reduce transaction fees for commercial card payments. If the class action is successful, the companies will be able to obtain financial compensation for the excessive transaction fees they have paid. In addition, it could also lead to a reduction in transaction fees for commercial card payments in the future.
How to join the class action?
To join this class action, businesses should :
– contact the law firm Harcus Parker
– and provide the necessary information about their business and the transaction fees they have paid.
The businesses affected by this class action are those that have made credit and debit card payments, particularly high value commercial card payments. Businesses of all sizes can be affected, from small local merchants to large multinational companies.
It is important to note that the class action is a collective legal action, which means that the final decision will be made for the entire class represented.
If the class action is successful :
Each company will be compensated in proportion to the excessive transaction costs it has paid.
If the collective action is not successful :
The companies concerned will have to look for other ways to recover the amounts lost. It is therefore important to monitor the progress of the class action in order to understand the implications of the final decision for the companies concerned.
In conclusion, the Harcus Parker class action against Visa and Mastercard is an important action for businesses that have been unfairly overcharged for commercial card payments. If you are an affected business, please contact the law firm of Harcus Parker to join this class action and obtain financial compensation for the excessive transaction fees you paid.