Visa/Mastercard Merchants Antitrust Settlement

The payment card industry has faced significant legal challenges over allegations of anticompetitive practices affecting millions of merchants across the United States. The Visa/Mastercard antitrust settlement represents one of the largest class action resolutions in American history, addressing decades of concerns about interchange fees and processing practices. Understanding this settlement is crucial for business owners who accept credit card payments and may be entitled to compensation.

What Is the Visa/Mastercard Merchants Antitrust Settlement?

The Visa/Mastercard antitrust settlement is a comprehensive legal resolution addressing allegations that Visa and Mastercard violated antitrust laws through their interchange fee structures and merchant rules. This merchant interchange fee lawsuit was filed on behalf of millions of merchants who claimed the payment networks colluded to set artificially high swipe fees and imposed restrictive rules that prevented merchants from steering customers toward lower-cost payment methods. The case has evolved over nearly two decades, with multiple attempts at settlement and ongoing litigation.

The settlement encompasses both monetary relief and changes to business practices. Merchants who accepted Visa or Mastercard credit or debit cards during the class period may be eligible for compensation based on the interchange fees they paid. The Visa/Mastercard antitrust settlement also includes provisions requiring the payment networks to modify certain anti-steering rules and provide greater transparency around processing fees.

Latest News Regarding the Visa/Mastercard Antitrust Settlement

Recent developments in the Visa/Mastercard antitrust settlement continue to shape the landscape for merchant compensation and payment processing practices.

• 2024 Settlement Proposal Rejected: In June 2024, a federal judge rejected a proposed $30 billion settlement in the merchant interchange fee lawsuit, finding it inadequate for class members and citing concerns about the release of future claims.
• Ongoing Trial Proceedings: Following the rejection, the case has moved forward with trial preparation, with merchants pursuing claims for both damages and injunctive relief against the payment networks' fee structures.
• Revised Settlement Negotiations: Parties have engaged in renewed settlement discussions to address the court's concerns, potentially leading to improved terms for merchants in future iterations of the Visa/Mastercard antitrust settlement.
• Congressional Scrutiny: Federal legislators have increased oversight of credit card processing fees, with proposed legislation aimed at increasing competition in the payment card market and reducing merchant costs.
• State-Level Actions: Several states have initiated separate investigations into payment network practices, potentially creating additional avenues for merchant relief beyond the federal class action.

The legal proceedings remain active, and merchants should monitor developments closely as the Visa/Mastercard antitrust settlement continues to evolve through the courts.

Why Are People Suing Visa & Mastercard?

Merchants filed this merchant interchange fee lawsuit based on several fundamental allegations about anticompetitive conduct in the payment card industry.

• Fixed Interchange Rates: Merchants allege that Visa and Mastercard conspired to set interchange fees at artificially high levels rather than allowing market competition to determine reasonable rates for processing transactions.
• Anti-Steering Provisions: The payment networks allegedly prohibited merchants from encouraging customers to use lower-cost payment methods, such as cash or debit cards instead of premium credit cards with higher swipe fees.
• Tying Arrangements: Merchants claim they were forced to accept all cards within a network if they accepted any, preventing them from declining high-fee premium cards while accepting standard cards from the same network.
• Network Rules Restrictions: The Visa/Mastercard antitrust settlement addresses allegations that honor-all-cards rules and no-surcharge provisions prevented merchants from managing their payment acceptance costs effectively.
• Market Power Abuse: With Visa and Mastercard controlling approximately 80% of the credit card market, merchants argue they had no meaningful alternatives and were forced to accept unfavorable terms to remain competitive.

These allegations formed the basis for one of the longest-running antitrust cases in U.S. history, affecting virtually every business that accepts card payments.

How a Class Action Lawyer Can Maximize Your Compensation

Legal representation can significantly impact your recovery in the Visa/Mastercard antitrust settlement and protect your interests throughout the claims process.

• Claims Documentation: Attorneys can help gather and organize the necessary transaction records, merchant statements, and financial documentation required to substantiate your claim for interchange fee damages.
• Claim Calculation Accuracy: Legal counsel can ensure your claim properly reflects all eligible transactions and processing fees paid during the class period, maximizing your potential recovery from the settlement fund.
• Objection Rights: If you believe the Visa/Mastercard antitrust settlement terms are inadequate, an attorney can file formal objections on your behalf and advocate for improved settlement conditions before the court.
• Opt-Out Considerations: Lawyers can evaluate whether opting out of the class action to pursue individual claims might result in greater compensation based on your specific circumstances and transaction volume.
• Future Claims Protection: Legal representation ensures you understand how participating in the merchant interchange fee lawsuit affects your ability to bring future claims related to payment processing practices.

Class Action 101 can review your merchant processing history and advise on the best approach for securing compensation through this settlement.

What to Do if You Missed the Claims Window

Missing a claims deadline in the Visa/Mastercard antitrust settlement doesn't necessarily mean you've lost all options for recovery or relief.

• Late Claim Submission: Contact the settlement administrator immediately to inquire whether late claims are being accepted or if extensions were granted, as courts sometimes allow additional time for merchants who missed initial deadlines due to lack of notice.
• Future Settlement Opportunities: The rejection of previous settlement proposals means new claims periods may open as the case continues, potentially providing additional opportunities to participate in the Visa/Mastercard antitrust settlement.
• Individual Action Consideration: Merchants who opted out or missed the class deadline may retain the right to file individual lawsuits against the payment networks, though this requires careful evaluation of costs versus potential recovery.
• Related Litigation Monitoring: Watch for additional antitrust actions or state-level cases that might provide alternative avenues for recovering interchange fee overcharges outside the federal class action framework.
• Documentation Preservation: Maintain all records of credit card processing fees, merchant statements, and transaction data, as these documents will be crucial if new claims opportunities arise in ongoing litigation.

Class Action 101 can assess your situation and identify any remaining options for pursuing compensation related to payment processing fees.

Take Action Today - Protect Your Rights

The Visa/Mastercard antitrust settlement represents a critical opportunity for merchants to recover damages from years of allegedly excessive interchange fees. Whether you're tracking current developments, considering participation in future settlement phases, or evaluating your legal options, understanding your rights is essential. Class Action 101 is here to help merchants navigate this complex litigation and pursue the compensation they deserve. Contact us today to discuss your potential claim and ensure your business receives the relief it's entitled to under this historic settlement.

Visa & Mastercard Antitrust Lawsuit FAQs

Who qualifies as a class member in the Visa/Mastercard antitrust settlement?

Generally, any merchant who accepted Visa or Mastercard credit or debit cards during the defined class period qualifies as a class member. This includes retailers, restaurants, service providers, and online businesses of all sizes that paid interchange fees to process card transactions. The specific class period dates vary depending on which aspect of the settlement or litigation you're reviewing, but typically extend back to January 2004 for certain claims.

How much money can merchants expect to receive from the settlement?

Compensation amounts vary significantly based on each merchant's transaction volume and the total number of valid claims submitted. In previous settlement proposals, payments were calculated based on a percentage of interchange fees paid during the class period. Individual payments could range from a few hundred dollars for small businesses to millions for large retailers, but the 2024 proposed settlement was rejected, so new terms are being negotiated.

What changes to payment processing practices does the settlement require?

The Visa/Mastercard antitrust settlement includes provisions allowing merchants greater flexibility in steering customers toward preferred payment methods. Merchants may now be permitted to offer discounts for using lower-cost payment options, display differential pricing, and communicate about the costs of different payment methods. The settlement also requires modifications to network rules regarding surcharging and minimum transaction amounts, giving merchants more control over payment acceptance policies.

Can merchants opt out of the class action to pursue individual claims?

Yes, merchants typically have the option to opt out of the class action settlement, which preserves their right to file individual lawsuits against Visa and Mastercard. However, opting out means forfeiting any payment from the class settlement fund. This decision should be made carefully, considering factors like your transaction volume, the strength of individual claims, litigation costs, and the time required to pursue separate legal action. The opt-out deadline is specified in class notice mailings.

How does this settlement affect current credit card processing fees?

While the Visa/Mastercard antitrust settlement addresses past practices and may include some prospective relief regarding merchant rules, it does not set future interchange rates or guarantee specific fee reductions. The payment networks retain discretion to adjust interchange rates within the constraints of any injunctive relief granted. Merchants should continue monitoring their processing statements and negotiating with payment processors for competitive rates. Future fee structures may be influenced by ongoing regulatory scrutiny and potential legislation.

What documentation do merchants need to file a claim?

Claim requirements vary depending on the settlement terms, but typically merchants need to provide merchant identification numbers, processing statements showing interchange fees paid, tax returns or financial records documenting card acceptance, and business formation documents. Some settlements use a claims formula based on reported transaction data, while others require detailed documentation. The settlement administrator usually provides specific instructions and claim forms outlining required documentation for participation in the Visa/Mastercard antitrust settlement.

Are there any costs to participate in the class action settlement?

For class members who do not opt out, there are generally no upfront costs to participate in the settlement and receive compensation. The attorneys representing the merchant class typically work on a contingency basis, with fees paid from the settlement fund and subject to court approval. However, merchants who choose to opt out and pursue individual claims will need to retain their own counsel and bear those legal costs directly.

How long does it take to receive payment after submitting a claim?

The timeline for receiving settlement payments can be lengthy, often taking one to two years or more after the claims deadline. The settlement administrator must process all claims, resolve disputes, calculate individual payments, and obtain court approval for distribution plans. Given that the most recent settlement proposal was rejected in 2024, merchants should expect significant additional delays as parties negotiate new terms and seek court approval for any revised Visa/Mastercard antitrust settlement.