In a Nutshell

At a massive $7.3 billion, the VISA/MasterCard Settlement is the biggest anti-trust settlement in history. Case details focused on an issue that U.S. merchants have faced for years: credit card interchange fees (fees charged to merchants when customers use credit cards to pay). While merchants argued that the amount is extreme, the credit card companies maintained that interchange fee rates were reasonable, appropriate, and legal.

The Background

Businesses accept VISA and MasterCard credit cards because of simplicity and benefits to consumers and merchants alike. However, despite the ease of use for merchants and their customers, there is a hidden cost in using cards which hits retailer pockets – interchange fees. Year after year, these fees continued to rise. Subsequently, footing these fees meant that merchants paid for their customers’ travel and “cashback” rewards. It also meant that merchants were making less profit while the credit card companies benefited tremendously.

Merchants cannot deny VISA and MasterCard a fair fee – but when the fees become unreasonable, that isn’t fair. In fact, there were whispers of conspiracy between the two companies to maximize their profits at the expense of everybody else. The overcharge varied according to industry, but the national average is over 2.0%. Did you know that this is the highest in the world? Did you know that this is the highest in the world? Does that sound right, when the U.S. has one of the most efficient and sophisticated retail processing systems in the world? Does that sound right, when the U.S. has one of the most efficient and sophisticated retail processing systems in the world?

As a result, in 2005, some of the United States’ biggest retailers – including Safeway Inc., Walgreen Co., and Kroger – filed an anti-trust suit against the two credit card companies and their member banks. Shortly thereafter, a class action was filed on behalf of the nation’s merchants as well.

The Settlement

In July 2012, after 7 years of courtroom battles, all parties agreed that it was in their shared best interests to settle. By October of that year, the District Court for the Eastern District of New York granted a preliminary approval for the proposed settlement, the key terms of which are:

• 6.05 billion will go into a fund to reimburse merchants for a fair portion of interchange paid between January 2004 and November 2012, paid by VISA, MasterCard, and some member issuing banks
• 1.6 billion reduction in interchange rates for merchants over an 8 month period from November 28, 2012

By agreeing to a class settlement, both sides avoided the expense of further trial and appeal. But, where does this class settlement leave business owners like you?

Update:

On Friday, the 13th of December 2013, the honorable John Gleeson, United States District Judge, issued the final approval of the proposed VISA/MasterCard Settlement.

Your Rights

If you are a merchant, own a retail company, or operate a business that accepted any VISA/MasterCard branded cards in the United States between January 1, 2004 and November 28, 2012, you could qualify as an eligible class member in the VISA/MasterCard Class Settlement – meaning you can claim your share of the available monies.

The Riveredge Benefit

Riveredge Recovery Group is a boutique claims recovery firm dedicated to helping businesses recover maximum possible payouts from commercial class action settlements, government refunds, and antitrust lawsuits.

Register today with Riveredge so that Riveredge's dedicated team can diligently pursue a maximum cash payout on your behalf from the settlement". Remember, we have a no-risk policy: No upfront fees and we don’t get paid unless you do. We will work diligently to pursue your rightful share of the settlement.