A class-action lawsuit against Mastercard and Visa makes millions eligible for a cash payment: Eligibility requirements

Mastercard and Visa have settled a class action lawsuit that accused the global payment giants of violating antitrust laws to exploit merchants. Millions of merchants were forced to charge high fees to accept customers paying with Visa or Mastercard. Finally, some will see a payout to compensate for the negative effects these actions had on their livelihoods. However, the settlement has not been welcomed news by all. Interestingly, and unsurprisingly, the largest critics of the settlement have come from major retail corporations, who accuse the negotiators of not fighting hard enough for major national retailers who represent the vast majority of sales using Visa or Mastercard.

How do I know if I am eligible?

Those eligible have until August 30 to submit their claim and can do so through Payment Cards Settlement. The online claims process works for those with a client ID because they were sent a Claim Form in the mail. Those without a Claim Form can still submit their claim using their Taxpayer Identification Number. Distribution of the Claim forms began in early December 2023 and continues on a rolling basis.

The class action’s eligibility period covers “all persons, businesses, and other entities that have accepted any Visa-Branded Cards and/or Mastercard-Branded Cards in the United States at any time from January 1, 2004, to January 25, 2019.” The website dedicated to the lawsuit provides some exceptions, known as “Dismissed Plaintiffs,” and encourages those who don’t know if they qualify to call 1-800-625-6440 or to check out the list that has been published already. This is your opportunity to be heard and compensated.

How much could one receive through the settlement?

Merchants who used Visa and Mastercard payment systems and were subjected to corporate collusion will be compensated. Visa will pay $105.7 million, and Mastercard will fork over $92.8 million. This case centers around Visa and Mastercard’s imposition of “interchange fees,” which are fees charged between banks for accepting card-based transactions. Corporate collusion allowed them to consolidate the market. The FAQ section with details on the case says the fees are “usually around 1% to 2% of the purchase price.”

According to the FAQ section, the payment amounts will vary as they are “based on the on your actual or estimated interchange fees attributable to Visa and Mastercard card transactions” during the abovementioned window.

Interestingly, the settlement has received criticism from many major corporations, who accuse the negotiators of not fighting hard enough for major national retailers who represent the vast majority of sales using Visa or Mastercard.