$5.6B Visa, Mastercard settlement with retailers upheld

Update:

• The claims period for this settlement has opened; the claim deadline is May 31, 2024.
• Claim forms began mailing Dec. 1, 2023.
• Because of the large number of claim forms being sent, class members may not receive one until late December 2023 or January 2024. 
• Help is available to any person, business or other entity that accepted any Visa- and/or Mastercard-branded cards in the United States at any time from Jan. 1, 2004, to Jan. 25, 2019.

Visa, Mastercard settlement overview: 

• Who: The 2nd Circuit Court of Appeals upheld a $5.6 billion class action settlement between Visa and Mastercard and more than 12 million retailers.
• Why: The settlement was made to resolve claims Visa and Mastercard overcharged retailers on interchange fees when consumers used debit or credit cards.
• Where: The settlement agreement involves a nationwide class of retailers. 
• How to get help: Any person, business or other entity that accepted any Visa- and/or Mastercard-branded cards in the United States at any time from Jan. 1, 2004, to Jan. 25, 2019, may qualify to receive a portion of this settlement.

The 2nd Circuit Court of Appeals upheld a $5.6 billion settlement agreement between Visa, Mastercard and more than 12 million retailers who accused the credit card companies of improperly fixing credit and debit card fees. 

The settlement resolved claims Visa and Mastercard overcharged retailers on interchange fees, also known as swipe fees, when customers used debit or credit cards, Reuters reports. 

Retailers also reportedly argued Visa and Mastercard prohibited them from directing customers to using a cheaper method of payment. 

The court, in upholding the settlement, rejected an argument that a class action lawsuit targeting Visa and Mastercard should never have been certified due to alleged confusion about deserved compensation, Reuters reports. 

Objectors to the settlement also reportedly argued the $523 million in legal fees awarded to the retailers’ lawyers was too high. 

Gas station operators object to settlement but cannot delay payments, judge rules 

Among the objectors to the settlement agreement are gas station operators for oil companies Chevron and Shell, who argue they were injured when making gas sales via Visa and Mastercard debit and credit cards, Reuters reports. 

A Second Circuit judge reportedly ruled the gas station operators and companies may go to court to resolve their claims against Visa and Mastercard but determined their claims are no reason to delay payments to other class members.

The retailers who did not exclude themselves from the class action settlement will be unable to bring any further claims against Visa or Mastercard within the 15-year class period and for five years after the settlement is finalized, Reuters reports. 

A New York federal judge approved the settlement agreement in January 2019, more than three years after the Second Circuit voided a previous settlement agreement in a decision that went all the way to the Supreme Court. 

What are your thoughts on the settlement agreement between the retailers and Visa and Mastercard? Let us know in the comments. 

Read About More Class Action Lawsuits & Class Action Settlements:

• Bank of America class action claims company canceled automatic bill payments without notification
• American Express class action alleges company submits hard credit inquiries despite contrary representations
• Proposed Credit Card Competition Act to reduce restaurant swipe fees
• Visa, Mastercard halt plans to track gun purchases