How to Cash In On the Payment Card Interchange Fee Settlement

The Payment Card Interchange Fee Settlement refers to a landmark antitrust lawsuit that led to a settlement agreement 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.

The settlement is one of the largest antitrust settlements in history, with Visa, Mastercard, and the banks agreeing to pay billions of dollars to affected merchants. The settlement aims to compensate merchants who accepted Visa and Mastercard credit or debit cards between January 1, 2004, and January 25, 2019, who may have been overcharged due to the alleged anti-competitive practices.

Previously, providing your processing statements was required in order to receive compensation. 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 doesn’t cost anything. Which brings me to my next point: services are cropping up, claiming they can submit a claim on your behalf. While this is true, all they’re doing is submitting your TIN and business name and charging you a fee. You can do this yourself!

 

Key Provisions of the Settlement

1. 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.
2. 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.
3. Claim Eligibility: Merchants who accepted Visa or Mastercard payments between January 1, 2004, and January 25, 2019, are eligible to submit a claim. This includes both large retailers and small businesses.

 

How Merchants Can Submit a Claim

For merchants to receive compensation from the settlement, they must submit a claim by the designated deadline. 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 the name of the business that accepted credit cards during the affected period. At this stage, you’ll 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 review your documentation and, if it is sufficient, search its records to see if it has interchange transaction fee information for the merchant. 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 its 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 the 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 Awareness: Merchants must be aware of the claim submission deadline, which will be clearly stated on the settlement website. Late submissions may result in ineligibility for compensation. As of August 8, the court granted a 180-day extension of the claims filing deadline and extended the deadline to Tuesday, February 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.

For the full details and to submit your claim, please go to paymentcardsettlement.com, the official court-authorized settlement website.

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