The Payment Card Interchange Fee Settlement is a significant event for merchants who have been impacted by the high fees charged by Visa and Mastercard for processing payment card transactions. This $5.54 billion class action settlement aims to compensate eligible merchants for the alleged overcharges they incurred from January 1, 2004, to January 25, 2019.
If you are a merchant who accepted Visa or Mastercard during this timeframe, you may be wondering how much you can expect to receive from the settlement and what steps you need to take to claim your share. This article will provide an overview of the settlement, eligibility requirements, the claim filing process, and factors that may impact your settlement amount.
Understanding the Payment Card Interchange Fee Settlement
Background of the Settlement
The Payment Card Interchange Fee Settlement stems from a class action lawsuit filed by merchants (Rule 23(b)(3) Class Plaintiffs) against Visa, Mastercard, and various Bank Defendants. The plaintiffs alleged that these entities violated antitrust laws by setting excessive interchange fees, which resulted in merchants being overcharged for accepting Visa and Mastercard transactions.
After extensive legal proceedings, a settlement was reached to resolve these claims. On December 13, 2019, the settlement received final approval from the court, paving the way for eligible merchants to receive compensation for the alleged overcharges.
Key Players Involved
The primary parties involved in the Visa Mastercard settlement include:
- Visa and Mastercard – The two major payment card networks accused of antitrust violations.
- Bank Defendants – Various banks that were also named as defendants in the lawsuit for their role in setting interchange fees.
- Rule 23(b)(3) Class Plaintiffs – The group of merchants who filed the class action lawsuit on behalf of all affected merchants.
Court Approval and Legal Proceedings
The settlement received final approval from the United States District Court for the Eastern District of New York on December 13, 2019. This approval marked a significant milestone in the lengthy legal proceedings surrounding the interchange fee lawsuit.
As part of the court approval, a settlement fund of $5.54 billion was established to compensate eligible merchants for the alleged overcharges. The court also approved attorneys’ fees, which will be deducted from the settlement fund before distribution to class members.
Eligibility for the Settlement
Who Can File a Claim?
To be eligible for the Visa Mastercard settlement, you must be a merchant who accepted Visa or Mastercard branded credit or debit cards from January 1, 2004, to January 25, 2019. This includes both physical establishments and online businesses that processed card transactions during the specified timeframe.
It is important to note that even if you are no longer in business or have switched payment processors since then, you may still be eligible for a settlement payment if you meet the criteria.
Timeframe for Eligibility
The eligibility period for the settlement spans from January 1, 2004, to January 25, 2019. Any merchant who accepted Visa or Mastercard during this timeframe is considered a class member and may be entitled to a portion of the settlement fund.
If your business only accepted Visa or Mastercard for a portion of this period, you can still file a claim for the time during which you were processing these card brands.
How Much Will I Get from the Settlement?
Factors Affecting Your Settlement Amount
The amount you can expect to receive from the Payment Card Interchange Fee Settlement depends on several factors, including:
- The total interchange fees paid by your business during the eligibility period.
- The number of valid claims submitted by other merchants.
- The deduction of court-approved attorneys’ fees and other costs from the settlement fund.
In general, merchants who processed a higher volume of Visa and Mastercard transactions during the eligibility period can expect to receive a larger settlement payment, as they likely paid more in interchange fee overcharges.
Estimating Your Claim Value
To get an idea of how much you might receive, you can use the claim form or online portal to estimate your claim value. The Class Administrator will calculate your estimated settlement share based on the information you provide about your business’s Visa and Mastercard transaction history.
Keep in mind that these estimates are not guaranteed, and your actual payment may be higher or lower depending on the total number of claims filed and the fees deducted from the settlement fund.
The Claim Filing Process
How to File a Claim
To participate in the settlement and receive your share of the funds, you must file a valid claim. The claim process involves the following steps:
- Obtain a claim form by mail or download it from the official settlement website.
- Provide the required information about your business and its payment card transaction history.
- Submit the completed claim form online or by mail before the claim submission deadline.
If your claim is approved, you will receive your settlement payment once the claims processing is completed and the funds are distributed.
Important Deadlines
One of the most crucial aspects of the settlement is the claim submission deadline. To be eligible for a payment, you must submit your claim on or before February 4, 2025. This is an extended deadline from the original date.
Any claims submitted after this deadline will not be considered, so it is essential to file your claim promptly to ensure your participation in the settlement.
What to Do If You Haven’t Received a Claim Form
If you believe you are eligible for the settlement but have not received a claim form, you can visit the official settlement website to obtain one or contact the Class Administrator for assistance.
When submitting your claim without a pre-populated form, you may be required to provide additional documentation to verify your business’s identity and eligibility, such as tax filings or payment processing statements.
Additional Information and Resources
Understanding Lawyers’ Fees and Deductions
As part of the court approval process, the attorneys representing the class plaintiffs were awarded fees for their work on the case. These lawyers’ fees, along with other court-approved costs, will be deducted from the settlement fund before the remaining funds are distributed to eligible merchants.
The exact amount of these deductions will be determined by the court and will impact the final settlement payments received by individual merchants.
How to Object to the Settlement Terms
If you are a class member and disagree with the settlement terms or have concerns about the fairness of the agreement, you have the right to file an objection. This process allows you to voice your concerns to the court before the final approval of the settlement.
To file an objection, you must submit a written statement to the court explaining your reasons for objecting. It is important to note that the deadline for filing objections has passed (July 23, 2019), and class members no longer have the option to opt-out of the settlement.
Where to Find More Information
For the most up-to-date information about the settlement, including claim submission deadlines and processing updates, visit the official settlement website at paymentcardsettlement.com.
The website provides detailed FAQs, downloadable claim forms, and contact information for the Class Administrator, who can assist you with any questions or issues related to your claim.
By staying informed and taking action before the deadlines, you can ensure that you receive your rightful share of the Payment Card Interchange Fee Settlement and hold Visa, Mastercard, and the Bank Defendants accountable for their alleged antitrust violations.
See also:
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