Visa/MC Interchange Fee Settlement

Visa, MasterCard, and the Defendant Banks have officially reached a new settlement on interchange fees. After years of delays, the Court granted Preliminary Approval of this Settlement, and has set a hearing for Final Approval on November 7, 2019. These are crucial steps toward establishing a claims process whereby eligible merchants will be able to claim their share of the billions in settlement funds.


In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation | MDL No. 1720

Settlement Fund:            $6.26 billion
Settlement Period:          January 1, 2004 - January 24, 2019
Claim Filing Deadline:     TBD

The lawsuit claims that merchants paid excessive interchange fees for accepting Visa and MasterCard because of an alleged conspiracy among the Defendants, and that merchants had to follow unfair rules that limited their ability to steer customers to other payment methods.

If your business accepted Visa or MasterCard payments any time from January 1, 2004 to January 24, 2019, you may be eligible to recover significant funds from this pending Settlement. Although the claim forms are not yet available and the filing deadline for claim submission has not been announced, you can engage MCAG now to ensure that a proper and timely claim is filed on behalf of your business.

This lawsuit is principally about the interchange fees attributable to merchants that accepted Visa or MasterCard credit or debit cards any time from January 1, 2004 to January 24, 2019, and Visa’s and MasterCard’s rules for merchants that have accepted those cards.

When a cardholder makes a purchase with a credit or debit card, there is an interchange fee charged to the merchant. This fee is usually 1% to 2% of the purchase price. Interchange fees typically account for the greatest part of the fees paid by merchants for accepting Visa and MasterCard.

Visa and MasterCard set interchange fee rates for different kinds of transactions and publish these rates on their websites, usually twice a year.

MCAG is an expert at identifying and recovering non-traditional high margin revenue for all types of organizations from class action settlements. We have experience and credibility in getting the most for your claim with the least effort on your part.

As part of its comprehensive services, MCAG will:

  • Acquire as much of the historical data applicable to the settlement as possible,
  • Fill out all of the necessary documentation,
  • Submit a claim for the maximum reimbursement,
  • Negotiate with the Settlement Administrator,
  • Reconcile returns on behalf of our clients, and
  • Distribute net recoveries from the settlement funds.

All of these services are performed on a contingent fee basis – if there is no recovery, there will be no fee.

If you do not file a valid and timely claim, or have a claim filed on your behalf by an authorized third party filing agent like MCAG, then you will not recover any money from the settlement.

If you do not complete and return the Enrollment Form / Recovery Service Agreement to MCAG prior to the settlement’s filing deadline (which is yet to be determined by the Court), then MCAG will not file a claim in to this settlement on your behalf. Therefore, you must file a claim on your own or through another authorized 3rd party filing agent like MCAG if you wish to receive compensation from this settlement.

MCAG works on a contingent fee basis so MCAG retains a portion of your settlement recovery amount. If your business is not entitled to a settlement recovery, then MCAG will not charge a fee.

If you did not process with your current credit card processor all the way back to 2004, you can help MCAG in supplementing your history for the entire claim period. This information can be provided when you submit your Enrollment Form.

Class members are not required to sign up for a third-party service in order to participate in any monetary relief from this settlement. Also, the Court wants to communicate that no-cost assistance will be available from the Class Administrator and Class Counsel during the claims-filing period.  You may file into the settlement on your own by following the steps outlined in the claim form that you will receive from the Class Administrator.

This is a fixed-fund settlement, and since we expect that the Settlement will be oversubscribed, all submissions will be pro rata reduced. At this time, there is no way to accurately estimate your return.

An oversubscribed fund means that the amount of funds submitted by the class as valid claims will be greater than the total funds available to be distributed to the class from the Settlement.

For example, if the total Settlement Fund = $5 billion and the total amount of valid claims submitted = $125 billion, then the payout from the Settlement will be a pro rata portion of each $1.00 submitted as claim.  In this example, where $125 billion in claims is submitted to a $5 billion fund, each claimant would receive a gross payout of $0.04 for every $1.00 of valid claims submitted.