You’re likely aware of the class action lawsuit filed in 2011 against Visa, Mastercard, and major banks over alleged ATM fee inflation. After over 8 years of complex legal proceedings, the defendants agreed to a $197.5 million settlement, providing compensation to consumers who paid unreimbursed ATM surcharges during the eligibility period. To understand your rights and options, keep reading to learn more about this significant settlement.
Key Takeaways
- A class action lawsuit was filed in 2011 against Visa, Mastercard, and banks for allegedly conspiring to restrain trade and inflate ATM fees.
- The lawsuit challenged the non-discrimination rules prohibiting differing ATM fees as violating antitrust laws.
- After a complex legal process from 2011 to 2020, a $197.5 million settlement was reached with Visa and Mastercard.
- The settlement provides compensation for consumers who paid unreimbursed ATM surcharges in the U.S. from October 2007 to July 2024.
- Eligible class members must submit a claim form by January 22, 2025 to receive a pro rata share of the Net Settlement Fund.
Background of the ATM Surcharge Fees Class Action
Although a class action lawsuit was filed against Visa, Mastercard, and banks in 2011, alleging they conspired to restrain trade and inflate ATM fees, the defendants deny any wrongdoing, maintaining their practices were lawful.
The lawsuit claimed the defendants’ non-discrimination rules, which prohibited ATM operators from charging differing fees, violated antitrust laws.
The case went through a complex legal process from 2011 to 2020, with an initial dismissal and subsequent reversal on appeal.
In 2022, Visa and Mastercard agreed to pay a total of $197.5 million to settle the remaining claims in the lawsuit over ATM surcharges and fees.
Allegations of Antitrust Violations
The class action lawsuit alleged that Visa, Mastercard, and banks conspired to restrain trade and inflate ATM fees through their non-discrimination rules. The lawsuit claimed the alleged conduct violated federal antitrust laws by unreasonably restraining competition and raising ATM surcharge prices.
The defendants denied any wrongdoing, maintaining their practices were lawful and denying liability for the alleged antitrust violations. The plaintiffs argued the defendants’ actions harmed consumers by limiting price competition and inflating ATM surcharges.
The Court hasn’t decided if the class can file a valid claim. A settlement was reached with Visa, but the other defendants continue to deny liability.
Procedural History of the Lawsuits
The ATM class action lawsuit has seen its fair share of ups and downs. Initially dismissed in early 2013, the D.C. Circuit subsequently reversed that decision in August 2015, allowing the case to move forward.
The discovery phase then spanned from 2017 to 2020 as the plaintiffs and defendants continued to battle over the allegations of antitrust violations.
Early Dismissal and Reversal
In 2013, the district court initially dismissed the complaint. However, the plaintiffs weren’t deterred.
In 2015, the D.C. Circuit Court of Appeals stepped in, reversing the dismissal and sending the case back to the district court.
This reversal was a significant victory for the plaintiffs. The case had now survived:
- An initial dismissal by the district court
- A successful appeal to the D.C. Circuit Court
- A denial of the defendants’ request for Supreme Court review
The lawsuit could now progress to the discovery phase, where the plaintiffs would have the opportunity to build their case against Visa, Mastercard, and their alleged violations of antitrust laws and restraints that inflated ATM fees.
Discovery and Progress Timeline
With the dismissal reversed and the plaintiffs granted the opportunity to build their case, the long-running ATM surcharge class action lawsuit now entered its discovery phase.
From 2017 to 2020, the plaintiffs filed a claim against Visa and Mastercard in Mackmin v. Visa Inc., alleging the companies conspired to fix and inflate ATM surcharges. The extensive discovery process allowed the Fees Class and Settlement Class to gather evidence for their class actions.
After over 8 years of complex procedural history, the case ultimately resulted in a $197.5 million ATM surcharge settlement with Visa and Mastercard in 2023.
The $197.5 Million Visa and Mastercard Settlement
The $197.5 million settlement fund provides compensation to consumers who paid unreimbursed ATM surcharges between 2007 and 2024. Consumers who previously filed valid claims may be automatically eligible for payments, while those with additional qualifying fees must file an updated claim by January 22, 2025.
The settlement denies any wrongdoing by the defendants but resolves the remaining claims in the class action lawsuit.
Settlement Fund Details
As part of the $197.5 million settlement, Visa has agreed to pay $104.6 million while Mastercard will contribute $92.8 million to resolve allegations of inflated ATM surcharges and antitrust violations.
The settlement fund will be distributed as a proportional share to eligible class members based on the total number of valid claims submitted. To receive a portion of the settlement, consumers must:
- Submit a claim form by January 22, 2025
- Prove they paid unreimbursed ATM surcharges in the U.S. between October 1, 2007 and July 26, 2024
- Provide documentation of valid ATM surcharges assessed
- File a new claim for any additional surcharges paid after previous settlements
Release of Claims
Participants in the $197.5 million settlement with Visa and Mastercard will release any claims they’ve against the companies regarding the challenged conduct that allegedly inflated ATM fees. Class members who participate won’t need to provide documentation of their ATM fees to be paid from the settlement fund. The settlement administrator will review and validate the claims submitted by class members to determine their eligibility for a payment.
While class members can opt-out and pursue their own legal action, those who remain in the settlement will forfeit their right to file separate lawsuits over the ATM surcharges.
Fees and Awards
Under the $197.5 million settlement, Visa and Mastercard have agreed to pay $104.6 million and $92.8 million, respectively, to resolve allegations of conspiring to restrain trade and inflate ATM fees in violation of antitrust laws.
Before class members can receive their share of the settlement fund:
- Fees and expenses, including up to 33% for class counsel, will be deducted.
- $10,000 service awards will be provided to class representatives.
- The remaining funds will be distributed proportionally based on the number of valid claims submitted.
- Class members must submit a claim form to receive compensation for unreimbursed ATM surcharges paid between October 1, 2007 and July 26, 2024.
Eligibility Criteria for the Settlement
To be eligible for the settlement, you must have paid unreimbursed ATM surcharges in the U.S. between October 1, 2007, and July 26, 2024. Transactions reimbursed or conducted on cards issued outside the U.S. are excluded.
If you previously filed a valid claim and received payment, you may be automatically eligible for additional payments without submitting a new claim. However, if you paid additional qualifying ATM fees not covered in a previous claim, you must file a new claim by the January 22, 2025 deadline.
Those who didn’t submit a prior valid claim must file a new claim by the January 22, 2025 deadline to be eligible for a payment.
The Claim Filing Process
If you previously filed a valid claim and received payment, you may be automatically eligible for additional payments without submitting a new claim.
To receive payment from the new $197.5 million settlement, new claimants who didn’t file a valid claim in previous settlements must:
- Submit a timely, valid claim form by January 22, 2025
- State under oath that ATM surcharges were assessed
- Provide details on the claim filing process
Payment amounts will be determined by the administrator based on the pro rata share of the Net Settlement Fund after deducting fees and expenses.
How Does the Direct Fairways Lawsuit Impact the ATM Class Action Lawsuit?
The direct fairways lawsuit overview reveals significant implications for the ATM class action lawsuit. As details unfold, overlapping claims and legal strategies may influence outcomes. Attorneys from both sides are closely monitoring developments, which could reshape settlement negotiations and influence precedent for future class action cases in similar contexts.
Settlement Benefits and Payout
The $264.24 million settlement provides substantial benefits to eligible class members who paid unreimbursed ATM surcharges between October 1, 2007, and July 26, 2024. Individuals who previously filed valid claims may automatically receive additional payments for any qualifying ATM fees not covered in their prior claim.
To receive a proportional share of the settlement fund, class members must submit a claim by January 22, 2025. The exact payout amount per class member can’t be predicted as it will depend on the total number of valid claims submitted.
The lawsuit alleged that Visa and Mastercard illegally fixed ATM surcharges, and the settlement received final approval in 2022.
Your Legal Rights and Options
As a member of the settlement class, you have several important legal rights and options. You can:
- Exclude yourself by November 22, 2024 to preserve your ability to sue Visa and Mastercard individually.
- Object to the settlement terms by November 22, 2024 and attend the final approval hearing.
- Do nothing, but you’ll give up your right to continue suing Visa and Mastercard for the settled conduct.
If you previously filed a valid claim, you’re automatically eligible for payment. If you paid additional unreimbursed ATM surcharges, you must submit an updated claim by January 22, 2025 to receive payment.
Conclusion
You’ve got a nice settlement on your hands! The $197.5 million payout is quite impressive, with over 12 million class members eligible to receive a portion. Remarkably, this settlement represents the largest antitrust class action recovery ever obtained against a payment card network. Be sure to file your claim by the deadline to get your fair share of the settlement benefits.
