Visa and Mastercard, two of the world’s leading payment card service businesses, are facing a massive settlement over charges of inflating ATM fees, which could result in cash back for eligible customers.
The aggrieved consumers launched a class action lawsuit, and the matter was resolved for $197.5 million, which would be shared among the eligible victims in proportion to the impact of the additional fees on them.
The Visa and Mastercard suit
Visa and Mastercard do not issue cards, offer credit, or establish rates and fees for consumers, but the banks and financial institutions they work with do, thus the additional fees they charged users through ATM surcharges and swipe fees were illegal.
Customers have a contract with their bank that specifies all fees, not with the payment card operator, therefore they could not have consented ahead of time to pay this additional money.
Consumers paid unnecessarily high fees when withdrawing cash, and businesses had to pay greater fees for accepting card payments, reducing their profit margins.
The case was settled for the aforementioned $197.5 million (divided between the two companies; Visa agreed to pay $104.6 million toward the settlement fund, and Mastercard will pay out $92.8 million) to end the legal proceedings, but neither company admitted to any wrongdoing, as is customary in class action suits of this nature.
Who is eligible to claim part of the settlement?
Not everyone affected by the fees will be able to claim a portion of the settlement. Certain situations qualify or exclude clients. You may qualify for a reward if:
– Between October 1, 2007, and July 26, 2024, you paid an unreimbursed premium for using a Visa or Mastercard debit card at a U.S. ATM.
– The fee was imposed by a bank in the Visa or Mastercard ATM network, such as JPMorgan Chase, Wells Fargo, or Bank of America.
You are not eligible if:
– Your ATM fees have already been repaid.
– Your card was issued outside the United States.
A prior settlement addressing ATM fees involved major US banks such as JPMorgan Chase, Wells Fargo, Bank of America, and others.
This settlement featured a payout of more than $66 million, and if you filed and received payment in the previous ATM settlement, you are automatically eligible for this one. However, if you have incurred additional ATM surcharges since then, you will need to file another claim.
How to File a Claim
Filing is straightforward, and you do not need to supply any papers to begin with. You can file online by visiting the Class Action suit’s website and completing the online form given, or by mail by downloading the same document, filling it out, and mailing it to the following address:
ATM Surcharge Settlement
P.O. Box 170500
Milwaukee, WI 53217
According to The Sun, when you file the application, in addition to supplying your contact information and answering certain questions regarding your ATM costs, you will sign under oath stating that you paid excessive surcharges, making it legally binding. It must contain only truthful facts.
Keep in mind that even if paperwork is not requested at the start of the process, the claims administrator may want more proof at a later date to support your claim or allocate your reward, so have it on available.
The deadline for filing a claim is January 22, 2025, with the final hearing to approve the settlement slated on January 24, 2025.
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