The Payment Card Interchange Fee Settlement resulted from a landmark antitrust lawsuit involving Visa, Mastercard and several major banks. The case centered around the interchange fees charged to merchants for processing credit and debit card transactions. These fees are set by card networks and are paid by merchants to the banks that issue the cards.

Many merchants argued that these fees were excessively high and were set in a way that stifled competition, leading to the lawsuit. After years of legal battles, the parties reached a settlement agreement in 2012. However, the settlement was partially overturned and revised in subsequent years, with the final agreement receiving approval in 2019.t

Many businesses, even those registered as high-risk, are finding that they are eligible to receive compensation. It only takes a few moments to begin the process, and it does not cost anything.

In one of the largest antitrust settlements in history, Visa, Mastercard and the banks agreed to pay billions of dollars to compensate merchants who accepted Visa and Mastercard credit or debit cards between Jan. 1, 2004, and Jan. 25, 2019, and who may have been overcharged due to the alleged anticompetitive practices.

Previously, merchants seeking compensation had to provide their processing statements — but this is no longer the case. Many businesses, even those registered as high-risk, are finding that they are eligible to receive compensation. It only takes a few moments to begin the process, and it does not cost anything.

Because of this, services are cropping up, offering to submit a claim on your behalf. However, all they are doing is submitting your taxpayer identification number and business name, and charging you a fee. You can easily do that yourself, and save the money. Here are some things to know about.

Key Provisions of the Settlement

Monetary Compensation: The settlement provides for a fund to compensate eligible merchants. The total amount available for distribution is estimated to be $5.5 billion.

Future Conduct Reforms: In addition to monetary compensation, the settlement includes provisions that require Visa and Mastercard to modify certain business practices. These changes are intended to improve transparency and competition in the payment card industry.

Claiming Eligibility: Merchants who accepted Visa or Mastercard payments between Jan. 1, 2004, and Jan. 25, 2019, are eligible to submit a claim. This includes both large retailers and small businesses.

How to Submit a Claim

To receive compensation from the settlement, merchants must submit a claim by the designated deadline, discussed below. Here is a step-by-step guide on how to do so:

1 • Determine Eligibility: First, merchants need to verify whether they are eligible to participate in the settlement. If they accepted Visa or Mastercard payments during the specified period, they likely qualify.

2 • Register with the Settlement Administrator: Merchants should visit the official settlement website, where they can register to receive updates and information on how to file a claim. The website will have the necessary forms and instructions.

3 • Gather Documentation: To submit a claim, merchants simply need to provide the taxpayer identification number and name of the business that accepted credit cards during the affected period. At this stage, you will need to upload a “proof of authorization” document showing that you have the authority to act on behalf of the TIN you provided. In this case, a signed W-9 will suffice.

The class administrator will then review the documentation and, if it is sufficient, search the records for the merchant’s interchange transaction fee information. You will be notified via email once the class administrator’s review is complete. You can add additional TINs to your account once it has been created, and the class administrator will also attempt to search the records for those.

4 • Submit the Claim Form: The claim form can be submitted via the official court-authorized settlement website. Merchants should carefully follow the instructions provided by the settlement administrator to ensure that their claim is complete and accurate.

5 • Monitor the Claim Status: After submitting a claim, merchants should monitor its status through the settlement website or by contacting the settlement administrator. They may receive updates or requests for additional information during the review process.

6 • Receive Payment: Once the claim is approved, the merchant will receive a payment from the settlement fund. The amount will vary based on factors such as the volume of transactions processed and the total number of claims submitted.

Important Considerations

Deadline: The claim submission deadline will be clearly stated on the settlement website. Late submissions may result in ineligibility for compensation. As of Aug. 8, the court granted a 180-day extension of the claims filing deadline, extending it to Tuesday, Feb. 4, 2025.

Legal Advice: Some merchants may benefit from seeking legal advice to ensure they fully understand their rights under the settlement and to help navigate the claim submission process.

Opting Out: Merchants who choose to opt out of the settlement will not receive compensation, but retain the right to pursue separate legal action against Visa, Mastercard or the banks involved.

The Payment Card Interchange Fee Settlement offers a significant opportunity for merchants to receive compensation for years of overcharged fees. By understanding the terms of the settlement and following the proper steps to submit a claim, eligible merchants can secure their share of the settlement funds. Merchants are encouraged to act promptly to ensure they meet all requirements and deadlines, maximizing their chances of receiving compensation. Visit the official court-authorized website, paymentcardsettlement.com, for full details and to submit your claim.

Jonathan Corona has two decades of experience in the electronic payments processing industry. As chief operating officer of MobiusPay, Corona is primarily responsible for day-to-day operations as well as reviewing and advising merchants on a multitude of compliance standards mandated by the card associations, including, but not limited to, maintaining a working knowledge of BRAM guidelines and chargeback compliance rules defined in both Visa and Mastercard operating regulations.