The Visa/Mastercard swipe fee settlement represents a landmark conclusion to longstanding antitrust litigation against the two major card networks, addressing claims that they conspired to inflate interchange fees unfairly charged to merchants for accepting credit card payments. This settlement affects any entity that accepted Visa or Mastercard payments in the United States from January 1, 2004, to January 25, 2019.
Settlement Overview
The total settlement fund amounts to $5.54 billion, intended to compensate eligible merchants who paid elevated swipe fees during the specified period. The settlement includes both a monetary compensation portion and an injunctive relief component that mandates changes to the card networks’ practices and rules to prevent similar issues in the future.
Eligibility and Claims
Eligibility extends to all persons, businesses, and entities that accepted Visa or Mastercard branded cards in the U.S. during the aforementioned dates. Merchants involved in prior lawsuits that settled independently, along with the U.S. government, Visa, Mastercard, and certain other excluded parties, are not eligible. Merchants who believe they are eligible but have not received a claim form can initiate the claims process by providing their Taxpayer Identification Number on the official settlement website.
Deadline and Claim Filing
The deadline to file a claim is set for May 31, 2024. Claimants can submit their applications online, utilizing the provided Claimant ID or their business details to start the process. It is crucial for potential claimants to adhere to this deadline to ensure they receive their portion of the settlement.
Calculating Claims
The calculation of claims considers several factors including the volume of Visa and Mastercard transactions processed by the merchant, the total interchange fees paid, and the proportion of these fees relative to the overall fees collected across all claimants during the eligible period. This ensures a fair and equitable distribution of the settlement funds based on the impact of the alleged overcharges.
Immediate Payment Options
In addition to waiting for the settlement distribution, which could take considerable time due to the scale and complexity of this class action, merchants have the option to sell their claims for an immediate payout. This offers an attractive alternative for those seeking immediate financial liquidity rather than enduring the uncertainty and delay of the settlement process.
Injunctive Relief
As part of the settlement, Visa and Mastercard will implement significant changes to their surcharging rules, allowing merchants more flexibility to impose surcharges on credit transactions at both the brand and product levels. These changes, along with restrictions on increasing interchange rates for at least five years, aim to provide lasting benefits and reduce the cost burden on merchants going forward.
For more detailed information about the settlement terms, claims process, and your rights and options as a merchant, please visit the official settlement website at Payment Card Settlement. This resource provides comprehensive details and updates about the settlement, ensuring that all affected merchants can make informed decisions about their involvement and compensation claims.