Chief executive Julia Lo Bue-Said said travel businesses have been routinely overcharged for merchant services – interchange fees – by Mastercard and Visa, who set their own fees rather than charging fees set by market forces.

This, she said at the Advantage conference in Madeira on Saturday (30 April), has led to "inflated pricing".

The class action has been brought by UK legal firm Harcus Parker and is fully funded and insured, meaning travel firms wishing to support the action can do so for free and without risk.

“Travel businesses have been, and continue to be, overcharged whenever they accept certain payments by Mastercard and Visa-branded cards," said Lo Bue-Said.

“This is because a large part of the merchant charge fees they pay to their banks – the interchange fees – have been set in advance by Mastercard and Visa themselves rather than by market competition, leading to, we believe, inflated pricing."

Advantage said interchange fees on corporate and commercial cards can average around 1.5%, while on consumer cards used by overseas visitors, the fees can run to around 1.8%.

“This anti-competitive and unlawful behaviour by the card schemes costs industry a lot of money each year and inflicts even more financial pressure on our members and the wider industry," Lo Bue-Said added.

Harcus Parker partner Jeremy Robinson added: “We are bringing a class action to get money back from Mastercard and Visa for the overcharges on corporate and commercial cards, and consumer cards used by overseas visitors. The class action is open to all businesses – big and small – who accept these card payments.”

Advantage members can register their interest at commercialcardclaim.co.uk.

TTG has approached Visa and Mastercard for comment.