Visa and Mastercard, two of the biggest payment card service providers in the world, may have landed themselves in hot water because of allegations that they are violating federal consumer protection laws. The basis of the accusations, as stated in the settlement website, concerns the inflated ATM surcharges as well as fees implemented by the corporations, which would, in turn, cost their customers excessively high prices per withdrawal while using their Visa or Mastercard debit cards.
The class action suit further cites that the companies also enforced high unreasonable penalties on merchants for the acceptance of credit and debit cards. While no one admits guilt, nor has the court decided on it, both companies agreed to a $197.5 million class action settlement.
Visa’s proportion in the fund added to this settlement is $104.6 million, whereas Mastercard comes in with $92.8 million. This suit comes after an earlier settlement regarding the same issues and those involving major US banks, which include JPMorgan Chase, Wells Fargo, and Bank of America. It had amounted to more than $66 million over allegations on ATM fees per bank in question.
Who is eligible for compensation?
Consumers who used Visa or Master debit cards in U.S.-based ATMs and incurred surcharges for ATM cash withdrawals between October 1, 2007, and July 26, 2024, may be part of the settlement. Cardholders must have incurred unreimbursed ATM access costs from banks that have a part in either the Visa or MasterCard ATM networks, such as JPMorgan Chase, Bank of America, or other major institutions, to become eligible.
But not everyone is entitled to compensation. Those who have already received reimbursement for their ATM surcharges will also be excluded, and so will all who performed the transactions with cards issued by banks located outside the U.S.
Such lawsuits related to Visa and Mastercard are parts of their pursuit through time to cut off excessive fees in various industries. Another such example is a “$9 million convenience fee settlement” to pay back movie patrons who were charged additional fees when buying their tickets. American citizens have also been informed that they can claim up to $401 as their share from a $4.1 privacy settlement.
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Next steps for eligible claimants
To collect the payment of the Visa and Mastercard settlement, an eligible person must submit a claim formally through the official site of such a settlement before the deadline. Claims would require proof or documentation of the incurred surcharges. Approved claims thus would then pay out a part of that settlement fund, the amount of which will depend on how many total valid claims were filed.
This is how the case poses a clear reminder of the need for financial transparency. Such a settlement relieves the consumer, but it also leaves him longing for better regulations against the acts of corporations in stating how fair a company they are in doing business compared with the customers and other merchants.
For more information concerning the settlement or filing claims, visit the official settlement site or make use of legal resources to ensure you receive any compensation you deserve.
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