Visa and Mastercard settle ATM fee lawsuit for $197 million
MasterCard and VISA credit cards are pictured in this illustration.
Visa Inc. and Mastercard Inc. have agreed to pay $197 million to resolve a class-action lawsuit filed by millions of consumers. The complaint accused financial payment companies of maintaining unreasonably high cash access costs.
The plaintiffs' lawyers announced the potential settlement in a filing in federal court in Washington DC on Wednesday. The compensation applies to customers who have withdrawn money from bank-operated ATMs since 2007. Two more related class actions involving non-bank ATM users and firms who own independent ATMs are currently proceeding in the same court.
The settlement needs to be approved by the court. Visa will contribute $104.6 million, while Mastercard will pay $92.8 million, according to the settlement papers. Previously, the case's bank defendants agreed to a $66 million settlement. Both Visa and Mastercard have denied any wrongdoing and have yet to reply to demands for comment.
The plaintiffs' lawyers asserted that the settlement will "deliver immediate and assured relief" to the impacted consumers.
The plaintiffs in the three connected actions claimed that Visa and Mastercard's ATM network rules caused them to pay excessive access fees. They were demanding more than $9 billion in damages.
The settlement comes after the US Supreme Court rejected Visa and Mastercard's appeal in April. The firms had contested a lower court's decision to enable the plaintiffs to sue as a class. Visa and Mastercard argued that the judge did not perform a "rigorous analysis" before certifying the class actions.
&im=FitAndFill=(700,400))
The greatest fighter jets that never flew: Top 8 cancelled fighter jets that had serious potential
&im=FitAndFill=(700,400))
Who rules the skies? Meet top 10 nations with most advanced fighter jets
&im=FitAndFill=(700,400))
US tried to shoot down this jet 100 times, failed every time! Here’s why
)
Indian astronaut Shubhanshu Shukla reunites with family after ISS return, pics strike emotional chord
)
‘I come from a place where no one expects you to succeed’: J&K's Saqlain Tariq on breaking barriers in Volleyball
)
She seduces and blackmails: Who is Seeka 'Miss Golf', woman allegedly behind Thailand monk sex blackmailing scandal who had 5,600 videos on phones?
)
Air India completes inspection of fuel switches on all Boeing jets in fleet, says ‘no problems detected’
&im=FitAndFill=(700,400))
7 must-watch psychological thriller series you can't miss on Netflix, Prime and more
&im=FitAndFill=(700,400))
Before Family Man 3 releases, watch these 7 Manoj Bajpayee movies and TV show on Netflix, Prime and more
&im=FitAndFill=(700,400))
Stimulus payments worth $300 to $1,700 coming in July: Do you qualify? Here's how you can claim your rebate
)
'Swollen fingers, bruised hand, marks on ankles': Trump's photos from FIFA sparks rumours about his health - Here's the truth
)
Rifles, grenade launchers for sale on X? Houthi-linked dealers sell US-made arms with labels 'death of America, Israel' on WhatsApp
The proposed settlement class is projected to have at least 175 million members. Consumers will be able to object to the conditions of the settlement, including the settlement fund amount and any legal expenses granted.
Visa and MasterCard are also involved in a second, ongoing legal case in Brooklyn federal court. The complaint contains charges that the corporations overcharged retailers and others for debit and credit card transactions.
(With inputs from Reuters)