Visa and Mastercard are set to pay out nearly $200 million to Americans affected by an ATM surcharge settlement. The $197.5 million settlement fund will be distributed to eligible cardholders based on their ATM usage and whether they have receipts for the fees they paid.
The settlement stems from a class action lawsuit in which Visa and Mastercard were accused of violating federal antitrust laws by inflating ATM access fees, also known as interchange swipe fees. These excessive fees were charged when consumers withdrew cash from ATMs using Visa or Mastercard debit cards. In addition, the companies allegedly imposed high fees on business owners who accepted credit and debit card payments.
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JPMorgan Chase, Wells Fargo, and Bank of America had previously been involved in the ATM fee case, contributing over $66 million to a settlement fund. Now, Visa and Mastercard have agreed to pay a combined $197.5 million to resolve the claims against them. Visa will contribute $104.6 million, while Mastercard will pay $92.8 million.
Eligibility and Payment
Consumers who are eligible for the Visa and Mastercard settlement include those who paid an unreimbursed ATM access fee between October 1, 2007, and July 26, 2024, when using a Visa or Mastercard debit card to withdraw money from a US ATM. The surcharge must have been paid to banks that are or were part of the Visa and/or Mastercard ATM networks, such as JPMorgan Chase, Bank of America, and Wells Fargo.
Individuals who have already been reimbursed for excessive ATM fees, as well as those whose surcharged transactions were conducted using cards issued by financial institutions outside the US, are not eligible for this settlement. However, those who previously filed a claim and received compensation from a past settlement on the same issue will automatically be eligible to receive payment from this new settlement.
Americans who paid additional ATM fees after filing a prior claim must submit a new claim to receive payment for those additional charges. Those who did not file a claim previously will need to do so to be eligible for compensation from the settlement.
To receive a payout, class members must submit a valid claim form by January 22, 2025. Payment amounts will depend on the number of people who file claims, so no specific payment estimates are available at this time.
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When filing a claim, consumers must provide proof, such as ATM receipts or electronic records, to validate their claims. The final approval hearing for the settlement is scheduled for January 23, 2025.
In addition to the Visa and Mastercard settlement, other ongoing settlements may offer Americans one-time payments of up to $5,000. For example, individuals impacted by a physical therapy data breach or hospital data breach may be eligible for these payments, with no proof required for some claims.
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