Visa Mastercard Settlement ATM Fees: Understanding the $197.5 Million Settlement

A $197.5 million settlement between Visa and Mastercard has been reached, affecting millions of consumers who used ATMs and paid fees. This settlement aims to provide refunds to those who were charged excessive fees for using out-of-network ATMs.

Consumers who used ATMs between 1996 and 2012 may be eligible for refunds. The settlement covers anyone who was charged a fee for using an ATM that didn't belong to their bank.

The class-action lawsuit claimed that Visa and Mastercard conspired to fix ATM fees, allowing banks to charge excessive fees. The settlement now requires banks to clearly disclose ATM fees to consumers.

The Visa Mastercard settlement is a significant development for those who've paid ATM fees while using the Visa or Mastercard networks. The settlement amount is $197.5 million, with Mastercard contributing $92.8 million and Visa contributing $104.6 million.

To be eligible for the settlement, you must have paid ATM fees during the relevant time frame, which is from October 2007 to the time the settlement is approved. You'll need to prove your impact by providing electronic records and ATM receipts showing the surcharges you paid.

The claim deadline is January 22, 2025, and the final hearing is scheduled for January 23, 2025. You can submit a claim through the website www.paymentcardsettlement.com. Keep in mind that lying on a claim form is a serious offense and can result in criminal prosecution.

Visa and Mastercard have not acknowledged any wrongdoing, but the settlement is a significant step towards resolving the allegations of illegal surcharges. The breakdown of the settlement is as follows:

This settlement is part of a larger effort to address consumer concerns about ATM fees. A previous settlement with bank defendants resulted in a combined payout of $66 million. The cumulative approach taken in this settlement is a comprehensive effort to rectify the situation.

The lawsuit against Visa and Mastercard has a clear claim process, which you can follow to get a share of the settlement money.

The claim deadline is January 22, 2025, and the final hearing is scheduled for January 23, 2025.

To file a claim, you can visit the official website at www.paymentcardsettlement.com. If you had previously filed a claim, you may not need to reapply unless you were subject to additional surcharges.

You can use electronic records or receipts as evidence of ATM fees when filing a new claim.

Here's a summary of the claim process:

Payments will be made soon after the final approval hearing, and the exact amount of each payment will depend on the number of approved claims.

Consumers will benefit from the ATM Lawsuit settlement through reduced ATM fees and surcharges in the future.

The settlement will give consumers more opportunities to express their concerns or objections to the settlement terms, including the agreed-upon amount and any legal fees awarded as part of the settlement.

At least 175 million members are part of the proposed settlement class, making it a significant impact on the consumer landscape.

Merchants will have more flexibility in steering customers to lower-cost ATM networks, potentially allowing them to negotiate lower interchange fees from banks.

Card networks like Visa and Mastercard will have less control over merchant routing decisions, which may reduce card issuer interchange fee revenue from ATM transactions.

The settlement provides important monetary damages and promises some incremental relief from inflated ATM fees, but litigation risks and impacts remain.

The total settlement amount was $197 million, paid by Visa and Mastercard to settle claims.

Visa and Mastercard face additional challenges, including a prolonged legal battle in a Brooklyn federal court over claims that they overcharged merchants and others in debit and credit card transactions.

The Visa Mastercard settlement on ATM fees is a significant development in the world of fintech. A class action lawsuit alleged that major banks and card networks conspired to raise ATM fees nationwide from 2007 to 2024.

The settlement fund is $197.5 million, which will be distributed to eligible class members. This represents a substantial payout for those affected by the inflated ATM fees.

Eligible class members will receive a pro rata share of the settlement fund after fees and costs are deducted. To get their share, they need to file a simple claim by January 22, 2025.

Prior claimants from the 2022 bank deal are already entitled to a new payment. Those not satisfied with the terms must exclude themselves by November 22, 2024, to preserve their right to sue separately.

The defendants did not admit guilt, but strong evidence of anticompetitive practices was presented. This lawsuit brings attention to issues surrounding price competition and transparency in the payment ecosystem.

The settlement payments will provide some compensation to consumers and businesses affected by the inflated ATM fees. However, the economics of card payments generally favors the dominant incumbents, and a major shift or transformation in the industry is needed for change to occur.

Consumers and merchants can learn from this lawsuit and demand more transparency and ethical practices from fintech industries. The payment ecosystem will continue to evolve based on consumer and merchant needs.