Due to accusations of inflating ATM fees, Visa and Mastercard, two of the biggest payment card companies in the world, are facing a significant settlement that could result in cash back for eligible customers.
A class action lawsuit was launched by the impacted consumers, and the case was resolved for $197.5 million. The money would be distributed to the eligible plaintiffs based on how the additional fees affected them.
The Visa and Mastercard suit
The additional fees that Visa and Mastercard were charging users through ATM surcharges and swipe fees were illegal because the banks and financial institutions they partner with are the ones that issue cards, grant credit, and establish rates and fees for consumers. Customers could not have consented in advance to pay this additional amount because they have a contract with their bank that details all fees, not with the payment card service. The surcharges reduced shops’ profit margins by forcing them to pay higher fees for accepting card payments and forcing consumers to pay unnecessarily high expenses when withdrawing cash.
As is typical in class action lawsuits of this kind, neither company has acknowledged any wrongdoing despite the case being settled for the previously mentioned $197.5 million (divided between the two companies, Visa agreed to pay $104.6 million toward the settlement fund and Mastercard will pay out $92.8 million).
Who is eligible to claim part of the settlement?
Not all those impacted by the fees will be eligible to receive a portion of the settlement. Customers will be qualified or disqualified based on specific requirements. You could be eligible for a compensation if
- Between October 1, 2007, and July 26, 2024, you used a Visa or Mastercard debit card to pay an unreimbursed surcharge at a U.S. ATM.
- The fee was imposed by a bank, such as JPMorgan Chase, Wells Fargo, or Bank of America, that is part of the Visa or Mastercard ATM network.
You will not be eligible if:
- Your ATM fees have already been paid back.
- Your card wasn’t issued in the United States.
Major US banks, including JPMorgan Chase, Wells Fargo, Bank of America, and others, were previously involved in a settlement pertaining to ATM surcharges. You are automatically eligible for this settlement if you filed and were paid in the previous ATM settlement, which had a payout of over $66 million. However, you will need to submit a new claim if you have since been charged additional ATM surcharges.
How to File a Claim
Filing is easy, and you won’t initially need to submit any supporting documentation. You can file by mail by downloading the identical paper, filling it out, and mailing it to the following address, or online by going to the Class Action suit’s website and filling out the online form there:
Settlement of ATM Surcharges
170500 P.O. Box
53217 Milwaukee, WI
According to The Sun, the paperwork is legally enforceable because you will sign under oath at the time of filing it, along with giving your contact details and responding to a few questions regarding your ATM fees, attesting that you paid exorbitant surcharges. It must contain only accurate facts.
Remember that the claims administrator may want further proof later to support your claim or to distribute your payout, even if no documentation is requested at the start of the procedure. Therefore, make sure you have it on hand.
The final hearing to approve the settlement is due for January 24, 2025, while the claim filing deadline is set for January 22, 2025.