$1.2B Discover credit card merchant interchange fee class action settlement

Discover agreed to pay up to $1.225 billion to resolve claims it misclassified certain credit cards as commercial cards, resulting in excessive interchange fees for merchants.

The Discover settlement benefits end merchants, merchant acquirers and payment intermediaries involved in processing or accepting a misclassified card transaction between Jan. 1, 2007, and Dec. 31, 2023.

Discover is a credit card company that offers a variety of cards to consumers and businesses, claiming more than 50 million cardholders around the world.

According to the class action lawsuit, some businesses may have been charged excessive fees by Discover when the company misclassified certain consumer credit cards as commercial credit cards.

Discover has not admitted any wrongdoing but agreed to a $1.225 billion class action lawsuit settlement to resolve the allegations.

Under the terms of the Discover settlement, class members can receive a cash payment based on the amount they overpaid in interchange fees as a result of the misclassification. Exact payment amounts will vary depending on the amount each class member overpaid.

All class members are guaranteed to receive at least $10 from the settlement. However, if the total of all base payments exceeds $50 million, base payments will be reduced on a pro rata basis. Likewise, payments will be increased on a pro rata basis until the total equals $540 million.

The deadline for exclusion and objection is March 25, 2026.

The final approval hearing for the Discover settlement is scheduled for May 20, 2026.

To receive a settlement payment, class members must submit a valid claim form by May 18, 2026.

Who’s Eligible

All end merchants, merchant acquirers and payment intermediaries involved in processing or accepting a misclassified card transaction between Jan. 1, 2007, and Dec. 31, 2023.

Potential Award

Varies.

Proof of Purchase

Documentation requirements vary as detailed on the settlement website.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

05/18/2026

Case Name

CAPP Inc., et al. v. Discover Bank et al., Case No. 1:23-CV-4676, in the U.S. District Court for the Northern District of Illinois

Final Hearing

05/20/2026

Settlement Website

DiscoverMerchantSettlement.com

Claims Administrator

Discover Merchant Settlement
c/o Epiq Class Action
P.O. Box 5370
Portland, OR 97228-5370
[email protected]
888-655-3176

Class Counsel

Roger N. Heller
LIEFF CABRASER HEIMANN & BERNSTEIN LLP

Catherine Pratsinakis
DILWORTH PAXSON LLP

Taras Kick
THE KICK LAW FIRM APC

Defense Counsel

Andrew Soukup
COVINGTON & BURLING LLP