Visa and Mastercard to Pay $197 Million in Settlement
Visa Inc. and Mastercard Inc. have reached a settlement agreement to pay $197 million to resolve a class-action lawsuit brought by millions of consumers. The complaint alleged that financial payment companies were imposing unreasonable cash access fees.
Details of the Settlement
- The settlement amount is $197 million.
- Visa will contribute $104.6 million, while Mastercard will pay $92.8 million.
- Bank defendants in the case had previously agreed to a $66 million settlement.
Background of the Lawsuit
The plaintiffs’ lawyers announced the potential settlement in a filing in federal court in Washington DC. The compensation applies to customers who have used bank-operated ATMs since 2007. Two additional class actions involving non-bank ATM users and independent ATM owners are ongoing in the same court.
Consumer Relief and Denial of Wrongdoing
The plaintiffs’ lawyers stated that the settlement will provide immediate relief to affected consumers. Both Visa and Mastercard have denied any wrongdoing and are yet to respond to comment requests.
Legal Proceedings and Settlement Approval
The settlement is subject to court approval. The proposed settlement class is estimated to include at least 175 million members. Consumers will have the opportunity to raise objections to the settlement terms.
Ongoing Legal Cases
Visa and Mastercard are also facing another legal case in Brooklyn federal court, where they are accused of overcharging retailers and others for debit and credit card transactions.