Payment Card Interchange Fee Settlement – Claim Deadline, Amount, Eligibility 

The Payment Card Interchange Fee and Merchant Discount Antitrust Litigation has been a legal battle in the United States, culminating in a $5.54 billion settlement involving Visa, Mastercard, and various financial institutions. The deadline for claim submission is May 31, 2024.

Payment Card Interchange Fee Settlement

The Payment Card Interchange Fee and Merchant Discount Antitrust Litigation concluded with a substantial $5.54 billion settlement, involving Visa, Mastercard, and several financial institutions, marking a significant legal dispute in the United States.

This settlement addresses claims of anti-competitive practices, particularly the alleged fixing of interchange fees charged to merchants for accepting payment cards.

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Eligibility for the Payment Card Interchange Fee Settlement

The Payment Card Interchange Fee Settlement offered compensation to a specific class of merchants.

• Business Type: The settlement applies to businesses and other entities that accept Visa or Mastercard branded cards. This includes corporations, partnerships, sole proprietorships, and even some non-profits.
• Transaction Period: You had to accept Visa or Mastercard branded cards at any time between January 1, 2004, and January 25, 2019.
• Card Brands: The settlement only covers Visa and Mastercard branded cards, not other payment networks or private label cards.
• Geographic Location: The business must have accepted the cards within the United States.
• Exclusions: Some entities were excluded from the settlement class, including:
  • The dismissed plaintiffs in the lawsuit.
  • The United States government.
  • The named defendants (Visa, Mastercard, and involved banks) and their affiliates.
  • Financial institutions that issued Visa or Mastercard branded cards or acquired such transactions during the relevant period.

• There was no minimum transaction volume requirement for eligibility. Any business that accepted the cards during the period could potentially qualify.
• The settlement did not require merchants to have been harmed by interchange fees to be eligible.

Claiming the Payment Card Interchange Fee Settlement

The deadline to submit a claim is May 31, 2024.If you received a claim form in the mail before the deadline, you can file online or by mail following the instructions provided: 

• Eligible merchants will receive a claim form in the mail between December 1, 2023, and May 31, 2024. This form will contain a Claimant ID and Control Number for identification.
• To support your claim, you will need documentation like merchant statements showing Visa and Mastercard transaction volume during the eligible period (2004-2019).
• Claimants have to submit their claim online through a secure website using the information on their claim form. 
• Alternatively, a paper claim form with supporting documents could be mailed to the address provided.

Payment Card Interchange Fee Settlement Amount

Settlement amount details are available below:

• Total Settlement Fund: The total settlement fund was $5.54 billion.
• Transaction Volume: The primary factor influencing individual payouts was the volume of Visa and Mastercard transactions a merchant processed between January 1, 2004, and January 25, 2019. 
• Merchants with a higher transaction volume would have received a larger share of the settlement funds.
• Pro Rata Distribution: The settlement fund was distributed to eligible merchants on a pro rata basis. This means the total volume of Visa and Mastercard transactions processed by all participating merchants was calculated. 
• Each merchant’s share of the settlement was then determined by the proportion of their transaction volume compared to the total volume of all claims.

Implications of the Payment Card Interchange Fee Settlement 

For Merchants:

• Potential Financial Benefit: Eligible merchants who filed claims could have received some compensation for allegedly inflated interchange fees. 
• No Change in Interchange Fees: The settlement did not directly regulate or reduce future interchange fees. Merchants may still face similar fee structures moving forward.
• Limited Impact on Consumer Prices: While the settlement aimed to address high interchange fees, it’s unclear how much, if any, impact it would have had on consumer prices. Merchants may not necessarily pass on any savings to customers.

For Visa and Mastercard:

• Settled Lawsuit: The settlement resolved a long-standing legal challenge regarding interchange fees. This provides some certainty for the card networks and avoids the ongoing costs and risks of litigation.
• No Admission of Wrongdoing: Importantly, Visa and Mastercard did not admit any wrongdoing as part of the settlement.

For the Payment Card Industry:

• Potential for Further Regulation: The lawsuit and settlement could reignite discussions about regulating interchange fees. This could lead to future legislative or regulatory actions aimed at controlling interchange fees.
• Focus on Transparency: The settlement might encourage more transparency in interchange fee structures within the payment card industry.