Lowe’s settles lawsuit against Mastercard, banks over transaction fee overpayment

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Transaction fee overpayment MDL overview: 

• Who: Lowe’s reached a settlement agreement with Mastercard, Wells Fargo, Bank of America, JPMorgan Chase and Citigroup. The company previously reached a settlement with Visa to resolve the same claims. 
• Why: The card companies and banks were accused of engaging in anti-competitive conduct that allegedly caused Lowe’s to have to overpay on transaction fees. 
• Where: The lawsuit was filed in New York federal court.

Lowe’s has reached settlement agreements with Mastercard and several banks to resolve a lawsuit claiming the card company and financial institutions engaged in anti-competitive conduct that caused the home improvement retailer to have to overpay on transaction fees. 

Lowe’s, which reached a settlement agreement with Visa over the same claims last month, filed a stipulation of dismissal on May 24, telling a New York federal court its allegations have been “fully settled.” 

The settlement agreement — of which the terms were not disclosed — resolves claims brought by Lowe’s against Mastercard, Wells Fargo, Bank of America, JPMorgan Chase and Citigroup. 

The allegations were part of an ongoing multidistrict litigation revolving around allegations Visa and Mastercard violated antitrust laws by allegedly working together with banks that issue their cards to eliminate competition, Law360 reports. 

Visa and Mastercard have also been accused of working the banks to inflate “interchange fees” that are charged for each transaction made. 

Lowe’s lawsuit argued rule preventing merchants from being able to steer customers into using specific payment option was violated

Lowe’s, along with others, argued there had been a violation of rules requiring merchants who accept Visa and Mastercard branded cards to take all of their brands of cards, regardless of fees that would be charged, Law360 reports. 

The allegedly violated rules were reportedly also designed to prevent merchants from being able to guide consumers into using specific payment options. 

As part of the broader action against the card companies and banks, a class of merchants reached a $7.25 billion settlement in 2012; however, it was later overturned by the 2nd Circuit, according to Law360. 

An updated settlement agreement was reportedly approved in 2019 and later mostly upheld by the 2nd Circuit. Other settlement agreements stemming from the litigation have involved Comcast, Costco and Dollar General, among others. 

Has a merchant ever tried to steer you into using a specific payment option? Let us know in the comments!

The transaction fee overpayment MDL is 7-Eleven Inc., et al. v. Visa Inc., et al., Case No. 1:13-cv-05746, in the U.S. District Court for the Eastern District of New York.

Read About More Class Action Lawsuits & Class Action Settlements:

• Appeals court upholds $5.6 billion Visa, Mastercard antitrust litigation
• Visa, Mastercard halt plans to track gun purchases
• American credit card debt increases at record rates
• Consumer financial watchdog proposes rule to curb excessive credit card late fees