This settlement, pending court approval, aims to compensate affected consumers who incurred unreimbursed ATM surcharges between October 1, 2007, and July 26, 2024.
Background of the lawsuit
The class-action lawsuit accused Visa and Mastercard of violating federal antitrust laws by implementing network rules that led to artificially high ATM fees. These practices allegedly restricted competition and resulted in consumers paying inflated surcharges when withdrawing cash from ATMs. The plaintiffs contended that such conduct was a restraint of trade, infringing upon the Sherman Act’s prohibition against unreasonable restraints of trade.
Settlement details
Under the terms of the proposed settlement, Visa will contribute approximately $104.6 million, while Mastercard will pay around $92.8 million, totaling $197.5 million. This fund is designated to compensate individuals and entities that paid unreimbursed ATM access fees directly to banks such as JPMorgan Chase, Wells Fargo, Bank of America, or other banks within the Visa and Mastercard ATM networks during the specified period.
Eligibility criteria
To qualify for a portion of the settlement, individuals must meet the following criteria:
- Time Frame: Paid an unreimbursed surcharge when using a US ATM with a Visa or Mastercard debit card between October 1, 2007, and July 26, 2024.
- ATM Network: The fee was charged by a bank in the Visa or Mastercard ATM network, such as JPMorgan Chase, Wells Fargo, or Bank of America.
Exclusions:
- Individuals who have already received a refund for the ATM fees charged.
- Credit card holders whose cards were issued outside the United States.
Claim submission process
Affected consumers must submit a claim by January 22, 2025, to be eligible for compensation. Claims can be filed online through the official settlement website or via mail. The claims administrator may request documentation to verify the claim, such as bank statements or receipts evidencing the ATM surcharges paid.
Important deadlines
Opt-out deadline: November 22, 2024 – Consumers who wish to exclude themselves from the settlement must do so by this date.
Claim filing deadline: January 22, 2025 – All claims must be submitted by this date to be considered for compensation.
Final approval hearing: January 24, 2025 – The court will hold a hearing to determine the fairness of the settlement.
Implications for consumers
This settlement represents a restitution effort for consumers subjected to inflated ATM fees over the past decade and a half. While Visa and Mastercard have denied any wrongdoing, opting to settle to avoid prolonged litigation, the compensation offers financial redress to affected individuals. The exact payout per claimant will depend on the number of valid claims submitted and the total amount of unreimbursed surcharges incurred by each claimant.
Next steps for eligible consumers
Eligible individuals should take the following steps:
- Review eligibility: Ensure that you meet the criteria outlined above.
- Gather documentation: Collect any relevant records that can substantiate your claim, such as bank statements indicating ATM surcharges.
- Submit a claim: Complete the claim form available on the official settlement website or request a form to be mailed to you.
- Monitor communications: Stay informed about any updates regarding the settlement, including the final approval status and potential payout timelines.
