In a major legal decision, Visa and MasterCard have agreed to a $200 million class action settlement due to claims of imposing unauthorized ATM withdrawal fees. This innovative case permits eligible clients to obtain reimbursements of up to $2,000. The legal action, encompassing dealings from 2007 to 2024, accused both firms of breaching antitrust laws, claiming they colluded with prominent banks to maintain high ATM surcharge fees, which ultimately impacted millions of users.
The court found that Visa and MasterCard violated consumer rights by imposing non-competitive charges without proper disclosure. Visa will contribute $104.6 million to the settlement, whereas MasterCard will bear the cost of $92.8 million. The ruling highlights the importance of equitable financial procedures and the need for safeguarding consumers in the banking sector.
This agreement not only compensates impacted consumers but also sets a significant precedent for holding financial entities responsible for hidden fees. Countless consumers who unwittingly incurred high ATM charges can now seek their refunds
Visa Mastercard Class Action Settlement Overview
| Aspect | Details |
| Settlement Amounts | – $5.54 billion settlement fund for merchants overcharged interchange fees (2004–2019)- $200 million settlement for consumers over unauthorized ATM withdrawal charges (2007–2024) |
| Settlement Parties | Visa, Mastercard, and major banks including JPMorgan Chase, Wells Fargo, Bank of America |
| Settlement Causes | – Antitrust violations related to fixed interchange fees and restrictive merchant rules- Unauthorized and excessive ATM withdrawal surcharge fees imposed on consumers |
| Affected Parties | – Merchants in the U.S. who accepted Visa or Mastercard payments from January 1, 2004 to January 25, 2019 (for interchange fee settlement)- Consumers who paid excessive ATM withdrawal fees from 2007 to 2024 |
| Eligibility | – Merchants who did not opt out of the settlement and filed valid claims by February 4, 2025- Consumers who qualify for up to $2,000 reimbursement for ATM fee overcharges |
| Claim Deadlines | – Merchants: February 4, 2025 (extended deadline)- Consumers: Claims process ongoing for ATM fee reimbursement |
| Payout per person Details | – Merchants receive payment proportional to interchange fees paid during class period- Consumers eligible for up to $2,000 reimbursement for unauthorized ATM fees |
| Settlement Periods | – Interchange fee case: January 1, 2004 – January 25, 2019- ATM fee case: 2007 – 2024 |
| Legal Findings | – Visa and Mastercard found to have enforced non-competitive fees and restrictive rules limiting merchant options- Court did not decide liability but approved settlement to avoid trial risks |
| Additional Notes | – The $5.54 billion settlement is one of the largest class action settlements in U.S. history- The $200 million ATM fee settlement is a precedent for consumer protection against hidden banking charges- Merchants received mailed notices with claim details and transaction data for verification |
| Settlement Administration | Claims reviewed and payouts scheduled after claim deadline; funds cover administration costs, attorneys’ fees, and taxes |
Visa Mastercard Class Action Settlement Background
The class action lawsuit began due to allegations that ATM operators faced limiting constraints from Visa and MasterCard that barred them from offering lower fees to customers using alternative payment networks. The companies and their partner banks profited from these restrictions, maintaining substantial surcharges while increasing costs for consumers.
As users and advocacy groups called for greater transparency in ATM fee structures, the case gained momentum from 2007 to 2024. Visa and MasterCard, as per the allegations, participated in anti-competitive practices that obstructed a fair market from progressively reducing ATM withdrawal fees
Visa Mastercard Class Action Settlement Eligibilty
Merchants could qualify for reimbursement if they accepted Mastercard and Visa payments from January 1, 2004, to January 25, 2029. Should you belong to any of the categories listed below, you will qualify for a reimbursement of $2,000.
Merchant Fee Settlement: Companies and non-profit organizations that accepted Visa or Mastercard payments within the specified period might qualify for a share of the merchant fee settlement. This includes businesses that have later closed or declared bankruptcy.
ATM Fee Settlement: Customers who incurred unreimbursed ATM access fees from banks affiliated with the Visa or Mastercard networks may qualify for refunds within the specified timeframe. Wells Fargo, Bank of America, and JPMorgan Chase are some of the eligible banks
Visa Mastercard Class Action Settlement Refund Calculation
- Although the highest reimbursement is $2,000 for each qualified consumer, the real refund amounts depend on:
- Total Approved Claims Count: Payments may be modified if claims surpass the $200 million fund.
- Frequency and Amount of Fees: Increased ATM use with elevated surcharge costs could lead to bigger refunds.
- Quality of Documentation: Detailed supporting materials increase the chances of obtaining a complete refund
class Action Settlement
How To Claim Visa Mastercard Class Action Settlement
- Eligible customers can submit refund requests through the ATM Recharge Settlement website. Although simple, the process requires detailed documentation.
- Visit the Settlement Website to confirm your eligibility.
- You can either download a paper form or complete the online claim form.
- Supporting documents should be submitted, including bank statements that display surcharge expenses.
- Submit your claim before the deadline (specific dates will be available on the official website)