The UK’s Competition Appeal Tribunal ruled on 27 June 2025 that Mastercard and Visa’s multilateral interchange fees breach European competition law, marking a significant legal development for the payments sector and the thousands of businesses affected by these charges. The unanimous decision came after the first trial involving around 2,100 merchants challenging the card networks’ standard fees, which are applied to acquirers for every card transaction.
Key Details of the Ruling
- Decision: Tribunal found Visa and Mastercard’s default interchange fees “anti-competitive”.
- Scope: The case involved about 2,100 merchants disputing charges linked to card payments.
- Appeal: Both card networks have stated intention to appeal the ruling.
- Implications: The judgment covers liability only; future trials will address exemption claims and whether extra costs were passed to consumers.
Interchange Fees Explained
Multilateral interchange fees are set independently by card networks such as Visa and Mastercard. These fees form a significant component of the Merchant Service Charge incurred by retailers each time a customer pays by card. Critics argue that the fees increase operational costs for retailers, which in turn may lead to higher prices for consumers.
Industry and Regulatory Response
David Scott, Global Managing Partner at Scott+Scott, representing the claimants, described the ruling as “a significant win for all merchants who have been paying excessive interchange fees to Visa and Mastercard.” However, Mastercard disagreed with the Tribunal’s conclusion, labelling the decision as “deeply flawed” and confirming plans to seek permission to appeal. Visa has also reiterated its view that interchange is vital for maintaining “a secure digital payments ecosystem.”
Trends Impacting Online Casino Withdrawals
The ruling comes amid growing pressure to reduce transaction costs and promote alternative payment methods within the UK gambling and retail industries. The Payment Systems Regulator (PSR) has actively advocated for alternatives such as Account-to-Account (A2A) payments and the adoption of Open Banking, both viewed as potential ways to bypass card scheme fees and support faster, less costly online casino withdrawals. For further information about e-wallets and their use in betting, see our guide.
| Area | Current Status | Possible Impact |
|---|---|---|
| Interchange Fees | Judged anti-competitive | Potential for lower transaction costs for casinos & merchants in future |
| Alternative Payments | A2A & Open Banking gaining ground | Increased payment choice, possibly faster withdrawals |
| Card Usage | Transactions exceeded £1 trillion in 2024 | Cards remain popular, but regulatory challenges persist |
Wider Context: UK and European Developments
This ruling forms part of a broader regulatory trend in the UK and Europe aimed at increasing payment system competition and reducing reliance on dominant card networks. In May 2025, Mastercard agreed to pay up to £200 million in compensation to UK consumers after settling a class-action lawsuit over interchange fee overcharges. At the same time, financial reforms continue across Europe to further bolster consumer choice and control over payment infrastructure (source).
Next Steps and What to Watch
- Both Mastercard and Visa are proceeding with appeals, and the legal process is ongoing.
- Future trials will examine whether the unlawful fees were passed on to consumers and consider possible exemptions.
- Industry observers anticipate increased momentum for payment alternatives, particularly those offering faster payout times for online casino customers and merchants.
For more on this topic and regulatory changes affecting casino payments, see our articles on UK regulators and digital wallets, withdrawal method options, and common payment issues.
