Visa and Mastercard Reach $167.5 Million Settlement over ATM Fees
Visa and Mastercard have agreed to a $167.5 million settlement to resolve a class-action lawsuit accusing the companies of conspiring to keep ATM access fees artificially high. The settlement represents a significant development for consumers who were charged unreimbursed fees when withdrawing cash from independent, non-bank ATMs.
Settlement Details
- Total settlement amount: $167.5 million
- Visa’s contribution: approximately $88.8 million
- Mastercard’s contribution: approximately $78.7 million
- Eligible recipients: Customers with qualifying ATM transactions since October 2007 who were charged access fees without reimbursement.
- Legal process: The settlement was filed in the federal district court in Washington and requires judicial approval to take effect.
Case Background
- Lawsuit filed: 2011, part of three related cases in the D.C. federal court.
- Consumer claims: Visa and Mastercard’s industry rules allegedly prevented independent ATM operators from offering lower fees, keeping costs artificially high for users.
- Companies’ stance: Both Visa and Mastercard denied any wrongdoing.
Related settlements:
- Last year, Visa and Mastercard agreed to pay $197.5 million to settle claims from another group of ATM users who were overcharged at bank-operated ATMs.
- Several banks agreed to pay $66 million in 2021 to resolve related claims.
Legal and Financial Implications
- Plaintiffs’ attorneys described the settlement as “an excellent result given the risks of continued litigation.”
- Attorneys are expected to request up to 30% of the fund—approximately $50 million—in legal fees.
- A third lawsuit from independent ATM owners and operators remains pending in the same court.
- Visa also faces other antitrust lawsuits, including a U.S. Justice Department case accusing it of illegally monopolizing the U.S. debit card market, which Visa has denied.
The settlement marks a significant step in protecting consumer rights and reducing fees at independent ATMs. It also highlights the ongoing legal challenges faced by global payment companies like Visa and Mastercard regarding antitrust regulations and market practices.
