Visa and Mastercard have recently agreed to a $5.54 billion settlement with merchants regarding excessive credit card interchange fees, commonly known as “swipe fees.” This marks the culmination of a protracted legal battle and stands as the largest antitrust class-action settlement in U.S. history.
Implications for Merchants and Consumers
The settlement, which still requires federal court approval, has the potential to benefit both merchants and consumers.
Settlement Highlights:
- Fee Reduction: Visa and Mastercard will reduce published credit-card interchange fees by four basis points in the U.S. for at least three years.
- Fee Freeze: Neither company will increase interchange fees for five years beyond the rates established at the end of 2023.
- Cost Savings: One of the law firms involved in the case has estimated that this fee reduction could save merchants $29.79 billion over the five years following the settlement’s approval.
Eligibility for Claim Submission:
Businesses that accepted Visa and/or Mastercard between January 1, 2004, and January 25, 2019, may be eligible to claim a portion of the $5.54 billion settlement. This includes businesses that have since closed or gone bankrupt.
How to File a Claim:
On May 14, 2024, the Court extended the claims-filing deadline to August 30, 2024.
Visit the official court-authorized settlement website to file a claim. There are two ways to proceed:
- Using a Claim Form: If you received a Claim Form in the mail, you can file a claim online using the provided Claimant ID.
- Without a Claim Form: If you did not receive a form, you can start the process by entering your Taxpayer Identification Number (TIN) on the settlement website. You’ll need to provide supporting documents such as a certificate of incorporation, a certificate of dissolution, a W-9, or a utility bill to access your interchange transaction fees.
For detailed guidance, a step-by-step video is available on the court-authorized website: Watch the video.
Determining Your Settlement Payout:
Your payout will be based on the actual or estimated interchange fees from Visa and Mastercard transactions between January 1, 2004, and January 25, 2019.
Factors Affecting the Payout Amount:
- The total value of all valid claims filed.
- The cost of administering the settlement and notifying class members.
- Taxes on the settlement fund.
- Attorney fees and expenses.
- Monetary awards to the Rule 23(b)(3) Class Plaintiffs for their representation of merchants in this case.
In Conclusion:
The Visa and Mastercard settlement is a major step towards resolving a long-standing issue that has impacted both merchants and consumers. Understanding the settlement’s details and eligibility criteria is essential for businesses seeking to recover costs from inflated swipe fees. For more information and to submit a claim, visit the official settlement website: Payment Card Settlement.
