The $5.54 billion settlement between Visa, Mastercard, and U.S. merchants marks a pivotal moment in the payment processing industry, addressing allegations of antitrust violations that have burdened businesses with inflated processing fees for over a decade. This settlement, stemming from the case In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation (Case number 05-md-1720, E.D.N.Y.), concludes that the companies engaged in practices that unfairly increased costs for merchants by fixing high swipe fees and limiting alternative payment methods.
Merchants affected by these practices during the period from January 1, 2004, to January 25, 2019, may now be eligible to recover a portion of their losses, with potential compensation ranging from 1-1.5% of their total gross processing volume. The exact amount will vary based on the total number of valid claims filed. This financial relief is not only significant for the immediate recovery of affected businesses but also signals a move towards more equitable practices in the industry, potentially lowering costs for businesses and consumers alike.
For those looking to navigate the claims process, services like CardSettlement offer comprehensive support, from submission to documentation, without upfront fees. While third-party assistance is available, merchants are not obligated to use these services to participate in the settlement, as the Class Administrator and Class Counsel provide free support during the claims-filing period.
The deadline for submitting claims is February 4, 2025, urging eligible businesses to act promptly. This settlement not only offers a chance for financial recuperation but also serves as a critical step towards fostering a more competitive and transparent payment processing landscape. For further details on eligibility and the claims process, merchants can visit paymentCardSettlement.com.
