Visa and Mastercard Settlement: Merchants Get Extra Time to Claim $5.5 Billion

A federal judge has extended the deadline for US merchants to file claims in a $5.5 billion class-action settlement involving Visa and Mastercard. The new deadline, set by Judge Margo Brodie, is February 4, 2025. This extension is the second this year.

The previous deadline was August 30. The extension allows more time for claim forms to reach potential claimants, according to the plaintiffs' lawyers. Merchants can file claims online. Eligible businesses could receive amounts in the hundreds of thousands of dollars.

Merchants Get Settlement Extension

The merchants in the class action are represented by Robins Kaplan, Robbins Geller Rudman & Dowd, and Berger Montague. Ryan Marth, a partner at Robins Kaplan and co-lead counsel, said the extension helps ensure that as many eligible merchants as possible can claim their share of the settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term.

On August 13, Judge Joseph Marutollo, a Federal Magistrate, held a hearing to discuss the claims submission process. He urged lawyers to address any issues raised by merchants and their representatives efficiently and properly.

Earlier, a US federal judge paused the $30 billion settlement proposed by Visa and Mastercard over claims of excessive swipe fees, which may lead to its rejection, as reported by Finance Magnates.

The settlement, intended to reduce transaction fees, has faced resistance from major retailers. Previously, Visa and Mastercard had settled a related lawsuit in 2018 for $6.2 billion but unresolved issues remained, leading to the current settlement under review.

Visa, Mastercard Antitrust Settlement

The settlement partially resolves an antitrust case where Visa and Mastercard were accused of overcharging merchants with excessive interchange fees, also known as swipe fees.

The class action includes any US businesses that accepted Visa or Mastercard credit or debit cards from January 1, 2004, to January 25, 2019. Visa and Mastercard did not admit to any wrongdoing in the case, which was solely a civil matter.