If you are using a Visa or Mastercard debit card in the US ATM and paid extra fees you could be eligible for a $1797 direct payment as part of a massive $197 million settlement. This refund comes after a US court ruled that the extra charges applied by Visa and Mastercard were unlawful.
Now affected cardholders have the chance to get their money back by filing a claim before the deadline. For more information on other upcoming payouts, check out the Wells Fargo Bank Settlement 2024: Eligibility and Payment Details to see if you’re eligible for additional compensation.
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Cardholders to Receive Direct Payments
- Visa will pay $104.6 million to its customers.
- Mastercard will refund $92.8 million to cardholders.
These refunds are related to extra fees charged to users who withdrew cash from ATM in the US. The court declared these charges illegal.
Who Qualifies for the Refund?
Not everyone using Visa or Mastercard will be eligible for a refund. To qualify you must meet two conditions-
- You used a Visa or Mastercard debit card to withdraw cash from a US ATM between 1st October, 2007 and 26th July, 2024, and paid a non-refundable surcharge.
- The ATM belonged to a bank like JPMorgan Chase, Wells Fargo, or Bank of America that is part of Visa or Mastercard network.
The settlement covers people who have paid these surcharges since 2007, but only if they meet these conditions.
Refunds: How to File a Claim
If you think you are eligible, here is how to request your payment:
- Visit the official class action settlement website.
- Fill out the online form or download and submit it to the ATM Surcharge Settlement.
- Provide your contact details and sign a sworn statement confirming that you paid excessive fees.
You won’t need to provide documents immediately, but the claims administrator may request additional proof later.
Important Dates to Remember:
- January 22, 2024: Deadline to file your claim.
- January 24, 2024: Final hearing to approve the settlement.
Missing these deadlines means you might lose your chance to claim a refund.
Why Were the Fees Unlawful?
According to the court, Visa and Mastercard charged these extra fees unfairly. The fees were applied when users withdrew money from ATMs operated by banks in their networks.
- Visa Fee Structure: Charges based on transaction volume.
- Mastercard Fee Structure: Charges based on a percentage of global transaction value.
These practices made using ATMs more expensive for customers leading to the court’s decision.
Visa Accused of Monopoly Practices
Beyond the refund issue, Visa is also facing a separate lawsuit in the US for allegedly trying to maintain a monopoly in the debit card market. The US Department of Justice claims Visa used unfair methods to suppress competition, such as penalizing businesses that considered other payment networks and bribing potential rivals.
This lawsuit is part of broader efforts by the Biden administration to tackle monopolistic practices, known as antitrust actions in the US Similar complaints against Visa have been raised in Europe and Australia, where the company’s operations have also been under scrutiny.
Key Facts About Visa Market Power
- Visa handles over 60% of debit card transactions in the US
- It earns around $7 billion annually in fees.
- The debit card division is highly profitable, even surpassing the credit card division in revenue in 2022.
Quick Comparison of Refunds: Visa vs. Mastercard
| Criteria | Visa | Mastercard |
| Total Refund Amount | $104.6 million | $92.8 million |
| Fee Structure | Based on volume | Based on transaction value |
| Market Share | 60% | Smaller than Visa |
If you’re curious about other major financial settlements, you might also want to read about the Green Valley Pecan Company Settlement: Eligibility and Payment Details to explore another opportunity for direct compensation.
FAQs
1. How do I know if I qualify for a refund?
Check if you used a Visa or Mastercard debit card at a U.S. ATM between October 1, 2007, and July 26, 2024, and paid a surcharge.
2. Do I need proof to file a claim?
Not initially, but the claims administrator may request additional proof later.
3. What happens if I miss the filing deadline?
You won’t be able to participate in the refund process if you miss the deadline.
4. Why are Visa and Mastercard refunding money?
A U.S. court found that the companies charged unlawful fees for ATM withdrawals.
5. Is this refund related to the monopoly lawsuit against Visa?
No, the refund is separate from the monopoly allegations.
Conclusion
This $197 million settlement marks a significant victory for consumers. If you’ve used a Visa or Mastercard debit card at a U.S. ATM and paid surcharges, check your eligibility for a refund. Remember to file your claim by the deadline to receive your share of the settlement. Beyond this case, it’s clear that Visa and Mastercard’s practices are under global scrutiny, and this could lead to more changes in the payment industry. Stay informed and make sure to claim what’s rightfully yours!
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