3 key points:
- A class action settlement approved $5.54 billion in interchange fee refunds.
- The settlement is for merchants that accepted Visa and MasterCard during the timeframe.
- Claim forms went out to many, but paymentcardsettlement.com has more information.
Why are Some Past Interchange Fees Suddenly Refundable?
Has your facility been dealing with high credit card fees within the last decade? It might be your lucky day to recover some of those funds! In December, the claim submission process, began for the largest private antitrust class-action settlement in U.S. history. In March of 2023, the Court of Appeals for the Second Circuit unanimously upheld the district court’s order giving approval to the $5.54 billion settlement on behalf of U.S. merchants in the “In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation” class action lawsuit. Claim forms went out to many businesses with instructions on how to recoup their funds.
The case was a putative class of over 12 million merchants that brought this antitrust action under the Sherman Act against Visa U.S.A. Inc., MasterCard International Inc. and numerous banks that serve as payment card issuers for those networks. The plaintiffs alleged that Visa and MasterCard used rules and practices relating to payment cards that had the combined effect of injuring merchants by allowing them to charge supracompetitive fees (also known as interchange fees) on each payment card transaction.
It took nearly 15 years of litigation, but the parties agreed to a settlement of roughly $5.6 billion, which included service awards granted to the lead plaintiffs and attorneys’ fees. This was upheld by the Second Circuit, which is where we are today with the settlement.
The class includes millions of U.S. businesses that accepted Visa and/or MasterCard credit or debit cards between January 1, 2004, and January 25, 2019, and who did not previously opt out, including healthcare providers.
How Can You Claim Your Refund?
Many businesses should have received claim forms in the mail and can follow the instructions on the form to file a claim online or by mail. If your facility did not receive a claim form, a website, PaymentCardSettlement.com has information and updates on the settlement, including a timeline, frequently asked questions (FAQs), and related documents to help you recover the money you are owed.
Often you are working to recover the revenue you are owed by patients. This settlement is a win for those that thought they were paying too much in card fees, and now you have a chance to recover some of your hard-earned revenue that should have never been taken.
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