Visa/Mastercard Interchange Fee Settlement: Everything You Need to Know
Disclosure: This page is for informational purposes only and is NOT legal advice. We are just presenting facts associated with the settlement, and we are in no way making suggestions or recommendations. PaymentCardSettlement.com is the ONLY court-authorized website for this case. Refer to that website or consult with an attorney for more information.
Merchants that accepted Visa and/or Mastercard payments in the United States between January 1, 2004, and January 25, 2019, may be entitled to recover funds as part of a $5.54 billion settlement.
Read on to learn more.
March 2024 Update: Visa and Mastercard Agree to Lower Interchange Rates and Guarantee No Increases For 5 Years
As part of the settlement, Visa and Mastercard each agreed to lower rates and promise not to increase for at least five years. Here’s a quick summary of what you can expect:
- Visa will reduce credit card rates by 4 basis points per year for the next 3 years
- Mastercard will also reduce its rates over the next 5 years
- The reduced rates for Visa and Mastercard will remain capped for at least 5 years, through 2030
- New network rules will go into place, giving merchants more flexibility and benefits for accepting electronic payments
- Merchants will have more options at the POS to help steer them towards payment acceptance methods that will better help them manage costs
You can read the full Visa press release and Mastercard press release for additional details. We’ll continue to update this page as more information becomes available.
What is the Visa/Mastercard Interchange Fee Lawsuit About?
The Visa/Mastercard class action lawsuit claims that merchants paid excessive fees to accept Visa and Mastercard payments in violation of US antitrust laws.
The lawsuit alleges a conspiracy between Visa, Mastercard, and certain bank defendants—ultimately resulting in merchants paying higher fees.
It also alleges that the defendants imposed and enforced rules that limited merchants from steering consumers to using other payment methods. Examples include no-surcharge rules, no-discounting rules, honor-all-cards rules, and more. The lawsuit alleges that these rules insulated Visa, Mastercard, and bank defendants from competitive pressure that would otherwise cause them to lower interchange fees.
How Much Money is There in the Visa/Mastercard Interchange Fee Settlement?
Visa, Mastercard, and the bank defendants have agreed to provide $5.54 billion to merchants who have not been excluded from the settlement class.
How Can Merchants Receive Money From the Visa/Mastercard Interchange Settlement?
Eligible businesses must fill out a valid claim form to receive money from the Visa/Mastercard interchange lawsuit. Merchants who did not exclude themselves from the settlement class should receive a form by mail or by email.
According to paymentcardsettlement.com (the only court-approved website for this settlement), merchants who are unsure whether they are part of the settlement are instructed to contact the Class Administrator by any of these three methods:
By toll-free phone: 1-800-625-6440
By email: [email protected]
By mail:
Payment Card Interchange Settlement
PO Box 2530
Portland, OR 97208-2503
How Much Money Can You Get?
The amount paid to each merchant from the settlement fund is based on the actual or estimated interchange rates for Visa and Mastercard transactions that your business paid between January 1, 2004, and January 25, 2019.
The amount of money to each authorized claimant depends on factors like:
- Money available to pay all claims
- Total dollar value of all claims filed
- Cost of class administration and notice
- Applicable taxes on the settlement fund
- Other tax-related expenses
- Attorney fees and expenses
- Money awarded to the Rule 23(b)(3) Class Plaintiffs for representation of merchants in MDL 1720, as stated in the Class Settlement Agreement and approved by the court
When Will Payments Be Made in the Visa/Mastercard Interchange Settlement?
No payments will be made before the claims period ends, which is May 31, 2024. This is because the pro rata cannot be determined until all claims have been filed, reviewed, and reviewed by the courts.
Currently, there is no set date or timeline for when payments will be made. We just know that they won’t be made before 5/31/2024.
How to File a Claim For the Visa/Mastercard Interchange Settlement
Claim forms became available to all known class members on December 1, 2023. The filing deadline is 11:59 PST on May 31, 2024.
There are three ways to file a claim:
- File a claim by scanning the QR code on your claim form
- File a claim online at paymentcardsettlement.com
- File by mail
Forms filed by mail should be sent to:
Payment Card Interchange Fee Settlement
P.O. Box 2530
Portland, OR 97208-2530
Who Are The Lawyers Representing the Lawsuit?
The court has already appointed lawyers to represent the Rule 23(b)(3) settlement class. Class members do not need to pay the court-appointed lawyers (they’ll get paid from the settlement funds).
Craig Wildfang
Robins Kaplan LLP
2800 LaSalle Plaza
800 LaSalle Avenue
Minneapolis, MN 55402
Laddie Montague, Jr.
Berger Montague PC
1818 Market Street
Suite 3600
Philadelphia, PA 19103
Alexandra S. Bernay
Robbins Geller Rudman & Dowd LLP
655 West Broadway
Suite 1900
San Diego, CA 92101
Merchants do not have to hire their own lawyers, but they can if they want to. Any merchant who does hire their own lawyer would have to do so at their own cost.
What Happens If You Do Nothing?
If you do nothing, you cannot get money from the settlement. Only eligible merchants who file a claim can get money from the lawsuit.
For more information, visit paymentcardsettlement.com.
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