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Mastercard compensation update as 100million put aside to repay UK shoppers

Walter Merricks, a former financial ombudsman, argued that 46 million shoppers were ripped off after fees were wrongly levied on transactions between 1992 and 2008

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Mastercard has agreed to settle the claim(Image: LightRocket via Getty Images)

Millions of shoppers who are awaiting compensation following a landmark case against Mastercard have been given an update this week.

Walter Merricks, a former financial ombudsman, argued that 46 million shoppers were ripped off after fees were wrongly levied on transactions between 1992 and 2008. The fees were paid by retailers accepting Mastercard payments, rather than by customers themselves - meaning you don't necessarily need to have owned a Mastercard to be eligible for compensation.

It is estimated that around 2.3 million people are expected to come forward to claim, with 100million ringfenced for consumers. If this happens, each person would get 45. If fewer people than expected claim, the maximum each person will get is 70.

[image of a woman's hands as she holds out British ten and twenty pound notes, with pound coins and a twenty pence piece.]

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You could be due up to 70 depending on how many people claim

However, consumers have not been able to submit their details yet, as the online claims portal was delayed following a legal challenge. But in an update this week, Mr Merricks announced that the legal claims have now been dropped, and anyone affected will be able to start the process of starting to claim compensation by the end of this year.

He said: "This finally opens the way for me to prepare for distribution of at least 100m to consumers. This is presently the largest amount ever secured from group litigation for the benefit of UK consumers."

Mr Merricks added: "When we are ready to launch (which will be in the coming months) there will be a nation-wide publicity campaign to alert people and a 6-month period during which people will be able to register their claim. The 100m will be divided equally between the people who claim, and the expectation is that consumers should get a minimum of 45, which could rise to as much as 70 depending on the numbers that claim. So for a couple this could be between 90 and 140."

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Mr Merricks said the payments will be made after the six-month period ends, which will be in the first half of 2027. People will be able to receive the payment into their bank account, or by receiving a gift voucher that will be emailed to them. He is also exploring giving consumers the option to donate the money to charity.

You may be eligible for payments if you lived in England, Wales or Northern Ireland for at least three months between June 1997 and June 2008, and you bought goods or services from UK businesses that accepted Mastercard credit cards.

If you live in Scotland, the starting point is May 1992.

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