Visa Swipe Fee Settlement How to Submit a Claim
A settlement of $5 billion to $6 billion has been approved by a federal appeals court in the US for retailers in a class action lawsuit. The Payment Card Interchange Fee and Merchant Discount Antitrust Litigation case dates back to 2005 and alleges that Visa and Mastercard violated laws by setting high interchange fees. The Federal Court of Appeals has upheld the decision of the US District Court to settle the Swipe Fee Settlement and provide compensation to retailers and other plaintiffs. Retailers who are part of this settlement will have the opportunity to receive compensation.
What is the Swipe Fee Settlement?
The Swipe Fee Settlement resolves allegations that Visa and Mastercard overcharged retailers through interchange fees, also called swipe fees. These fees are applied when customers use their credit cards for transactions. The settlement also addresses claims that these credit card companies restricted retailers from directing customers toward more cost-effective payment methods. Visa and Mastercard initially accepted a $5.3 billion settlement in 2012. However, disputes between companies regarding compensation led to the rejection of the deal by the Circuit court. On February 22, 2019, the court approved an astonishing amount of over $5 billion. Payment processing companies and other respondents agreed to a total of $6.24 billion as part of the Swipe Fee Settlement agreement. Specific merchants had the option to exclude themselves from the settlement.
The value of each claim is calculated based on the interchange fees from merchant transactions made with payment cards between January 1, 2004, and January 25, 2019. In December 2019, Judge Margo Brodie in Brooklyn approved the $7.25 billion Swipe Fee Settlement, which had initially been invalidated for not adequately compensating certain retailers. The final settlement amount was adjusted to approximately $5.6 billion. Arnold & Porter Kaye Scholer LLP and Holwell Shuster & Goldberg LLP represented Visa, while Wharton & Garrison LLP, Weiss, Paul, and Rifkind represented Mastercard. The group of Merchants is represented by Robins Kaplan LLP, Berger Montague PC, and Robbins Geller Rudman & Dowd LLP as class counsel.
Recent Updates in the Settlement.
An appeals court recently upheld a $5.6 billion Swipe Fee Settlement in a class action lawsuit involving 12 million retailers. The lawsuit accused Visa Inc. and MasterCard Inc. of manipulating credit and debit card fees. The US Circuit Court in Manhattan dismissed objections raised about the certification process and the $523 million legal fees awarded to the retailer’s lawyers.
How Much Money Will An Authorized Claimant Will Receive?
As part of the Swipe Fee Settlement agreement, Visa, Mastercard, and the Bank Defendants have agreed to provide $5.54 billion to non-excluded merchants. This fund will compensate Authorized Claimants under Rule 23(b)(3) Settlement Class, cover settlement-related costs, address tax obligations, and pay attorneys’ fees and costs. The amount each Authorized Claimant receives depends on factors like claim value, administration costs, taxes, attorneys’ fees, and money awards for Class Plaintiffs. The compensation is based on interchange fees charged by Visa and Mastercard from January 1, 2004, to January 25, 2019, and was court approved on December 13, 2019.
How will the Value of Your Claim be Determined?
The Class Administrator will assess the amount you can claim by analyzing information from the Defendants and other sources. They will estimate the value of interchange fees for each Authorized Claimant member of the Rule 23(b)(3) Settlement Class based on your Visa and Mastercard transactions from January 1, 2004, to January 25, 2019. This data will be used to calculate interchange fees paid.
If there are challenges in estimating your Interchange Fees Paid or if you disagree with the determined value, you may need to provide additional information to support your claim. This could include details about your Interchange Fees Paid, merchant discount fees, your business merchant category code, or your total Visa and Mastercard transaction volume. The company will use this information to estimate the specific Interchange Fees Paid related to you.
To understand how your claim value was calculated, you can access a code on a claims website provided by the Class Administrator or find the information on the Claim Form or at PaymentCardSettlement.com.
How Can You File the Claim?
The availability of Claim Forms for the Swipe Fee Settlement is still being determined. The timing for when the court will approve a Claim Form and distribute it to Class Members is unknown. Access to the Claim Form will be provided through mail or the website via a helpline number for further information. Class members can submit their claims through the settlement website via email or by sending a physical paper Claim Form. Additionally, class members have the option to fill out a pre-registration form on www.PaymentCardSettlement.com. Checking your status can be done by contacting 1 800 625 6440.
Filing a Claim – What it means to You?
By submitting a claim or choosing not to opt out of the Rule 23(b)(3) Settlement Class, you are agreeing to the terms outlined in the Class Swipe Fee Settlement Agreement. This agreement includes releasing any claims you may have against Visa, Mastercard, and other defendants. Whether you decide to file a claim for payment is your choice.
Submitting a claim or not excluding yourself from the settlement class means you are releasing any claims against the defendants and other parties mentioned in Paragraph 30 of the Class Settlement Agreement. These released claims cover allegations and rules related to the litigation or that could have been raised during this litigation. These released claims apply to future occurrences up to five years after court approval of the settlement and resolution of all appeals.
Additionally, these released claims include any rules similar to those existing when preliminary approval of the Swipe Fee Settlement was granted. Future claims arising from regulations will be released if they occur within five years following court approval of this settlement and resolution of all appeals. It’s important to note that this release does not prevent you from pursuing relief or declaratory relief claims that are prerequisites for relief claims in other specific class actions.
It is recommended to carefully read the Release document, which is written in legal terms. If you have any questions or concerns about the release and its implications, it is advised to seek guidance from the Rule 23(b)(3) Class or consult with a lawyer at your own expense.
What happens if I choose not to participate in the claim?
If you choose not to participate in the Swipe Fee Settlement class, you will not receive any compensation or be able to raise objections. The deadline for exclusion from the settlement has passed.
Can I individually sue companies for these claims?
You cannot individually sue companies for these claims if you are part of the Rule 23(b)(3) Settlement Class. By participating in the settlement, you have waived your right to file lawsuits against the defendants for related claims.
How do I submit an objection regarding the settlement?
The deadline for objections to the settlement was July 23, 2019. If you missed this deadline, you cannot submit objections regarding the settlement.
Where can I find up-to-date information about this litigation?
For information on the litigation, review the Superseding and Amended Class Settlement Agreement and visit www.PaymentCardSettlement.com for relevant documents. Contact the Class Administrator for any assistance.