Visa and Mastercard Settle ATM Fee Lawsuit for $167.5 Million
Visa and Mastercard have reached a significant settlement in a class-action lawsuit. They will pay a total of $167.5 million due to allegations of collusion that led to inflated ATM access fees. The proposed agreement has been submitted to the federal district court in Washington and awaits judicial approval.
Settlement Details
The settlement fund will provide compensation to consumers who incurred unreimbursed access fees when using independent, non-bank ATMs. Visa is set to contribute approximately $88.8 million, while Mastercard will contribute around $78.7 million. Eligible users will be able to receive money from transactions dating back to October 2007.
Background of the Lawsuit
The lawsuit was initiated in 2011, challenging practices implemented by Visa and Mastercard. These practices allegedly hindered independent ATM operators from offering lower fees to consumers. Despite the accusations, both Visa and Mastercard denied any wrongdoing.
Related Legal Proceedings
- The current lawsuit is one of three similar cases filed in the DC federal court.
- Last year, Visa and Mastercard agreed to pay $197.5 million to settle claims from another group regarding overcharges at bank-operated ATMs.
- In 2021, several banks settled for $66 million over comparable claims.
The attorneys representing the plaintiffs described the settlement as a favorable outcome given the potential risks associated with further litigation. They plan to request that the court awards them up to 30% of the fund, amounting to about $50 million, in legal fees.
Ongoing Legal Challenges
A separate lawsuit involving independent ATM owners and operators is still in progress within the same court. Additionally, Visa is facing other antitrust claims, including a case from the US Justice Department, which alleges that it unlawfully monopolized the US debit card market. Visa continues to deny these allegations.
