Several major retail brands, including Levi’s, Superdry and AllSaints, are seeking compensation from Visa and Mastercard on payment companies’ controversial transaction fees, according to a Telegraph report.
Fashion chains are following in Amazon’s footsteps – Last month, the e-commerce giant said it would not allow customers to use Visa credit cards on the site in Britain due to “high fees” after Brexit.
It comes after the Supreme Court said last year that Visa and Mastercard fees were in breach of EU and UK competition laws. Supermarket chains Sainsbury’s, Asda and Morrisons were among the first to take the company to court, with Sainsbury settling with Mastercard in August, but not yet with Visa.
The report says there is no specific amount of the proposed damages yet.
According to some industry insiders whose names were not disclosed in the report, it was no surprise that there were more companies coming to sue Visa and Mastercard. But some say they may settle the matter out of court before the outcome of the original cases by next year.
Mastercard was quoted as saying that retailers “derive real value from our network and we are committed to supporting our retail partners to adapt and grow their businesses during this challenging time.”
PYMNTS reported last month that Amazon’s ban on UK Visa cards on the site would come into effect.
See more: Visa credit cards issued in the UK are no longer accepted by Amazon as of 2022
The report said that customers will be able to use Visa and other cards outside the UK
A spokesperson described the cost of accepting card payments as an ongoing obstacle to “companies striving to provide the best rates to customers”.
“These costs should decrease over time with advances in technology, but instead continue to rise or even rise,” the spokesperson told Bloomberg.
The issue of card fees has been an ongoing point of contention, with retailers facing a problem with the way companies spend billions to accept electronic payments, while fees continue to rise, particularly when customers use premium cards with higher exchange rates.