Search
The CAT has today handed down a long-anticipated judgment on pass-on in the Interchange Umbrella Proceedings, following Trial 2 which took place between November 2024 and April 2025.
Trial 2 brought together two sets of proceedings relating to the multilateral interchange fees (MIFs) set by Visa and Mastercard – the MIF Umbrella Proceedings on behalf of thousands of merchant claimants in respect of all MIFs; and the Merricks v Mastercard collective proceedings on behalf of UK consumers. The latter and the claim brought by Allianz settled during the course of the trial. Trial 2 dealt with pass-on at two levels: pass-on of MIFs by acquiring banks to merchants; and further pass-on by merchants to consumers. The class representative in the CICC collective proceedings, which claims on behalf of merchant claimants in respect of commercial card MIFs also participated in respect of acquirer pass on.
The Tribunal has delivered an important judgment on the legal principles relating to pass-on when pleaded either as an element of the claim or as mitigation defence. In respect of pass on by merchants to consumers it held that the Defendants had to prove a “direct causative link” between the MIF overcharge and downstream prices. The Tribunal found that the Defendants had not demonstrated the requisite direct causative link in respect of any of the Claimants (with the exception of Travix, WorldRemit and the underwriting part of Allianz’s business) and therefore the legal test for causation for pass-on was not met. In respect of pass-on by acquiring banks to merchants, the Tribunal held that direct causation was proven, and that so-called ‘blended’ MIFs were passed on to merchants at a rate of 85%.
Jack Williams and Alastair Holder Ross represented Mr Merricks (and the represented class of consumers), instructed by Willkie Farr & Gallagher (UK) LLP
Philip Woolfe KC and Reuben Andrews represented the merchant claimants instructed by Stephenson Harwood LLP and Scott+Scott UK LLP, as well as Merchant Claimants in the CICC collective proceedings in respect of acquirer pass-on, instructed by Harcus Parker.
Ben Lask KC represented Allianz, instructed by Pinsent Masons LLP