Merchants who accepted Visa and Mastercard payments between 2004 and 2019 are now eligible for compensation under a historic $5.5 billion class action settlement. This settlement addresses claims that Visa and Mastercard overcharged merchants with excessive interchange fees, violating U.S. antitrust laws. If you’re a business owner who accepted these cards, here’s what you need to know to claim your share.
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What is the Payment Card Interchange Fee Settlement?
The settlement stems from a class action lawsuit alleging that Visa, Mastercard, and their member banks colluded to set artificially high interchange fees—often referred to as “swipe fees”—imposed on merchants for processing card payments. This lawsuit claimed that these practices violated antitrust laws, resulting in undue financial burdens for merchants across the U.S.
Settlement Overview
- Total Settlement Fund: $5.5 billion
- Eligibility Period: January 1, 2004 – January 25, 2019
- Filing Deadline: February 4, 2025
- Settlement Class Exclusions:
- The U.S. Government
- Financial institutions issuing Visa or Mastercard
- Merchants who previously settled and dismissed their lawsuits
- Visa and Mastercard member banks, their directors, officers, or family members
Eligibility: Who Can File a Claim?
To qualify for compensation, you must meet the following criteria:
- Merchant Status: Your business accepted Visa or Mastercard payments between January 1, 2004, and January 25, 2019.
- Non-Excluded Entities: You do not fall into one of the settlement exclusions, such as being a dismissed plaintiff or a financial institution tied to Visa or Mastercard.
If you’re unsure whether you qualify, you can review the list of excluded entities or contact the claims administrator at 1-800-625-6440.
Steps to File Your Claim
Merchants can file their claims online or via mail. Follow these steps to ensure your submission is complete:
1. Access the Official Settlement Website
Visit the Official Court-Authorized Settlement Website to begin the claims process.
2. Obtain the Claim Form
Download or complete the form online by clicking the “Submit a Claim” button.
3. Provide Business Information
Fill in details about your business, including merchant information, transaction data, and proof of Visa/Mastercard payment processing during the eligible period.
4. Attach Supporting Documentation
Include any required documentation, such as processing statements or records, to verify your eligibility.
5. Submit Your Claim
Submit your completed form by February 4, 2025, either online or via the provided mailing address.
Important Dates to Remember
- Claims Filing Deadline: February 4, 2025
- Additional Claim Form Mailing Period: Until the end of October 2024
- Settlement Updates: Stay informed via the official website for any new developments.
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Understanding Interchange Fees and Their Impact
Interchange fees, or swipe fees, are charges imposed on merchants for processing card transactions. While typically a percentage of the transaction amount, these fees became a significant expense for businesses. The lawsuit argued that Visa and Mastercard conspired with their member banks to keep these fees unreasonably high, stifling competition and burdening merchants.
Why This Settlement Matters for Merchants
This landmark settlement is a rare victory for merchants, offering long-overdue compensation for years of excessive fees. By participating, eligible merchants can recoup some of their losses and send a message about the importance of fair and competitive business practices in the payment processing industry.
FAQs
1. What is the average payout for eligible merchants?
Payouts will vary based on the volume of Visa and Mastercard transactions your business processed during the eligible period. Exact amounts are determined after all claims are reviewed.
2. What happens if I miss the filing deadline?
Claims submitted after February 4, 2025, will not be considered. Ensure you file your claim before the deadline to secure your share.
3. How can I get assistance with my claim?
Contact the claims administrator via the settlement website or at 1-800-625-6440 for help with your application.
The Payment Card Interchange Fee Settlement represents a significant opportunity for businesses affected by Visa and Mastercard’s practices to recover a portion of their expenses. Don’t miss out on this chance to claim your share—file your claim today!
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