One of the largest antitrust settlements in U.S. history stands to benefit millions of small businesses. The ongoing class action lawsuits against Visa, MasterCard, and Discover are landmark victories for small merchants who have no alternative but to accept the card processing fees assessed by much larger corporations. A major victory for fair practices in the payment processing industry, the settlements also present a significant opportunity for merchants who have accepted debit and credit card payments over the past two decades to recover their losses.
These settlements have sweeping implications for the future of small businesses and hold potential value for businesses of all sizes. Now is the time to ensure your business is in line to benefit from settlement payouts and position yourself to secure ongoing savings and wealth creation.
Visa and MasterCard Class Action Lawsuits
The class action lawsuit against Visa and MasterCard dates back to 2005, when a group of merchants filed suit claiming that Visa and MasterCard operated under restrictive rules and, working with several major banks, conspired to artificially inflate interchange (or “swipe”) fees, thereby violating antitrust laws.
While these fees are an accepted part of how credit cards work, merchants further alleged that Visa and MasterCard’s restrictive rules also prevented them from rejecting higher-fee cards or surcharging clients. Since merchants who do not accept credit cards are at a significant disadvantage, lawyers argued these rules insulated Visa and MasterCard from competitive forces.
Ultimately, Visa and MasterCard reached a settlement and agreed to pay somewhere between $5.54 billion and $6.24 billion to nearly 19 million merchants.
Settlement Scope
Settlement funds are available to any U.S. merchant that accepted Visa and MasterCard payments between January 1, 2004, and January 25, 2019.
Merchants are eligible to receive compensation relative to their transaction volumes during the claim period. This means both small businesses and large enterprises stand to recover substantial sums.
Furthermore, the settlement overturns previous rules, allowing merchants to surcharge Visa and MasterCard branded cards cards up to 3% per transaction and caps interchange fees through 2029, despite increases starting January 2025.
Claims Process
Claims forms were distributed to approximately 18.6 million merchants following the settlement, but any U.S. merchant that accepted credit card payments during the period can file a claim. Despite misinformation and fraud circulating by third-party services, you have a right to restitution in this settlement.
Filing a claim is simple but merchants should also validate their own claims by reviewing historical credit card processing statements and transaction records. This entails verifying historical payment data and including all eligible transactions from the past two decades.
Timing is crucial. To qualify, claims must be filed by February 4, 2025.
Discover Settlement
In a separate class action lawsuit, Discover settled for between $500 million to $1.09 billion after misclassifying credit card transactions between 2007 and 2023. Over 16 years, thousands of businesses of all sizes were mistakenly moved into higher pricing tiers, leading to systematic overcharging that went against the company’s own rules. This primarily happened because Discover mistakenly labeled certain transactions as commercial rather than consumer transactions.
After merchants alleged they were being charged higher interchange fees, Discover failed to provide transparency around these misclassifications, and many merchants remained ignorant that they were paying higher fees than necessary. Now, Discover owes merchants restitution.
Settlement Scope
Settlement funds are available to any U.S. merchant that accepted Discover credit card payments between January 1, 2007, and December 31, 2023. Like the Visa and MasterCard settlement, claimants are entitled to compensation amounts based on transaction volume and the degree of miscalculation.
The settlement also ensures that Discover will address and resolve these systemic issues to avoid their future occurrence.
Claims Process
As of Jan 17th, 2025, there is not yet a formal process for filing a claim. Details are still being finalized and will be made available on this website when completed. As in the other settlement, merchants may need to validate the claims by reviewing credit card processing statements and transaction histories.
Why Expert Help Matters
It’s crucial for merchants to take advantage of these opportunities. For some small business owners with limited resources, it may feel like the reward is not worth the time and frustration of filing.
Experts at VeriFee can:
- Identify opportunities like these in the first place, with a demonstrated track record of helping clients capitalize on dozens of class action lawsuit opportunities.
- Save clients time by supporting them through the lawsuit, eligibility, claim submission process, reconciliation and follow-ups.
- Validate claim amounts using advanced AI analysis tools.
- Find ongoing cost reduction opportunities with your existing credit card processing company without making changes to your existing processor, hardware, software, or internal processes.
Regardless of company size, VeriFee can ease the burden on businesses and help them complete everything necessary in time for the February 4, 2025 Visa and MasterCard settlement filing deadline an the upcoming Discover settlement.
Savings Money Beyond Refunds: VeriFee’s Unique Value Proposition
Recovering settlement funds can make a big impact on your business. VeriFee will simplify the claim process to ensure you get your maximum refund while reducing stress. But as a leader in credit card processing fee analysis and cost optimization, VeriFee offers much more in a post-settlement landscape including:
- Comprehensive Claim Assistance: VeriFee ensures accurate documentation, timely filing, and reconciliation of eligible refunds while reducing the burden on business owners.
- Ongoing Expense Reduction: VeriFee uses advanced AI-powered analysis to identify areas of inefficiency and hidden fees within your current credit card processing structure, raising opportunities to reduce fees and save more money over time.
- No Disruption Guarantee: VeriFee does not require you to change credit card processing vendors, equipment or POS system, or internal processes – we work in your existing environment.
- Performance-Based Fees: VeriFee’s gain-share model guarantees their clients pay a percentage of measurable savings or refunds.
Payment processors don’t play fair, but VeriFee is here to even the odds. Leveraging cutting-edge AI, we help you uncover hidden costs, recover refunds, and maximize savings—turning the industry’s complexity into your advantage.
How To Get Started With VeriFee
Getting started to secure your settlement refund and ongoing savings is easy. Here’s a simple checklist:
- Business Name (Tax Filing Name)
- Company Contact Information
- Tax ID Number
- Recent Credit Card Processing Statement
- A Short Questionnaire About Current Payment Processing Setup
- Contact Us Today
While we work on your refund, VeriFee can also help unlock ongoing cost reductions from your existing credit card processor.
Claim Your Refund Before the Deadline
While the Discover settlement has yet to release a claim filing deadline, the Visa and MasterCard deadline is fast approaching. You must file a claim by February 4, 2025.
This is a key opportunity to not just reclaim funds but also improve cash flow and reduce future costs. With deadlines looming and a complicated process, expert guidance is essential.
Take action today and let VeriFee help you recover what’s rightfully yours while future-proofing your payment processing costs.
Claim forms have been distributed and made available since December 1, 2023. It’s important to note that class members do not need to use third-party services to access monetary relief. Free assistance is provided by the Class Administrator and Class Counsel throughout the claims-filing process. VeriFee.com is a private company providing claims-filing services. For more details on the claim, visit the official claims website at paymentcardsettlement.com
