The US antitrust lawsuit against Visa and Mastercard has ended with a $5.54 billion settlement that includes Visa, Mastercard, and other financial institutions. The Visa and Mastercard settlement may apply to entities that accepted their branded cards in the United States between January 1, 2004, and January 25, 2019. If you plan to submit a claim, you should know the eligibility criteria for the payment card interchange fee settlement.
The claims process for this settlement is currently open. To be eligible to receive any settlement funds, you must SUBMIT A CLAIM by August 31. This article will explore the eligibility requirements you need to meet before submitting your claim.
An Overview of the Visa and Mastercard Interchange Fee Settlement
The settlement is a $5.54 billion agreement intended to reimburse merchants who accepted Visa and Mastercard from January 1, 2004, to January 25, 2019, for what are claimed to be excessively high fees. Furthermore, the settlement includes provisions to reduce credit card interchange fees, cap them for at least five years, and grant merchants greater leeway in applying surcharges.
As noted by the National Retail Federation, swipe fees typically cost merchants about 2% of a customer’s total transaction amount but can reach up to 4% for certain premium rewards cards. Under the settlement terms, these fees would be reduced by at least 0.04 percentage points for a minimum of three years.
Additionally, the agreement stipulates that Visa and Mastercard maintain the swipe fee rates as they were on December 31, 2023, for a period of five years.
Understanding the Eligibility Criteria for the Payment Card Interchange Fee Settlement
Visa and Mastercard settlement eligibility criteria are specific and encompass various business types and operational parameters during the designated period. Here’s a refined breakdown of the eligibility details:
1. Type of Business:
This litigation applies to several businesses that take cards with the Visa or Mastercard brands. It also covers businesses that conduct transactions through various payment networks, such as companies, sole proprietorships, partnerships, and nonprofit institutions.
2. Transaction Period:
To be eligible, businesses must accept Mastercard or Visa-branded cards between January 2004 and January 2019. Because of this long time frame, many businesses may be eligible for a claim under the settlement terms.
3. Card Brands:
Only transactions using cards with the Visa and Mastercard brands are eligible. This settlement excludes transactions with private label cards or other banking networks.
Remember that the legal jurisdiction of the settlement is reflected by the requirement that eligible transactions take place within the US.
4. Exclusions:
The litigation expressly excludes a number of organizations, including:
- The US government.
- Plaintiffs whose cases were dismissed in the case.
Visa, Mastercard, the banks involved, their affiliates, and any other financial service providers that handled these transactions or printed cards with the Mastercard or Visa logo throughout the applicable time frame.
5. Minimum Transaction Volume:
A minimum transaction volume is not necessary in order to be eligible for the settlement. Any establishment that takes the above card brands during the allotted time range is eligible.
6. Requirement of Harm:
Eligibility does not depend on the merchant having experienced specific harm from interchange fees. The primary criterion for qualification is the mere act of conducting transactions with Visa or Mastercard branded cards during the specified period.
As mentioned, all parties interested in this settlement must submit their claims before the August 30, 2024 deadline. The official settlement website or contact the settlement administrator directly can provide comprehensive details on the claim procedure, including required paperwork and processes. If you qualify for the settlement, you should have got a claim form at your address. This form includes a QR code that, when scanned, provides access to a secure website where you can submit your claim.
Simply scan the QR code from your claim form to access the website and select “Submit My Claim.” This will direct you to a page where you must enter necessary details such as your Claimant ID, control number, or taxpayer identification number, all located on the claim form you received. You can also simplify the process by partnering with HMS. In the next section, we will give you an overview of how you can file a claim with HMS.
How Can You File a Claim with Host Merchant Service?
Host Merchant Services has partnered with Certificate Clearing Corporation to simplify the process. Here’s how to file a claim for the Visa and Mastercard Settlement:
On December 1, 2023, claim forms were distributed to all identified class members. If you are filing online, you must submit your claim form by August 30, 2024, at 11:59 p.m. PST. Follow these steps to file your claim for the Payment Card Interchange Fee Settlement:
- Go to the HMS claims page here.
- Click on the option to file a claim.
- A form will appear on your screen.
- Enter your Claimant ID and Control number in the designated fields.
- Fill out the required fields with your information, such as name, company, phone number, and email address. Attach any necessary documents.
- Click the ‘Submit a Claim’ button to complete the process.
Conclusion
The Payment Card Interchange Fee Settlement allows eligible entities to claim reimbursement for interchange fees incurred while accepting Visa or Mastercard branded cards in the United States between January 1, 2004, and January 25, 2019. The $5.54 billion settlement aims to alleviate merchants’ financial burden and includes provisions to reduce interchange fees and grant merchants greater flexibility.
Understanding the eligibility criteria, which cover aspects such as business type, transaction period, card brands, geographic location, and exclusions, is crucial for potential claimants. The claims process is open until August 31, 2024, so eligible parties are encouraged to submit their claims promptly. Partnering with organizations like Host Merchant Service can streamline the filing process, ensuring entitled parties can access their rightful reimbursement efficiently.
Frequently Asked Questions
Who is eligible to participate in the Visa and Mastercard Interchange Fee Settlement?
Eligible participants include individuals, businesses, and entities in the U.S. that accepted Visa and/or Mastercard cards from January 1, 2004, to January 25, 2019, excluding specific groups like dismissed plaintiffs and government entities.
What constitutes a valid claim under this settlement?
To file a valid claim, entities must have accepted Visa and/or Mastercard payments within the specified period. Claimants must submit a completed claim form by the deadline, which is extended to August 30, 2024.
What are the steps to file a claim?
Claim forms are mailed to known class members and can be completed online. Entities not receiving a form can request one from the settlement administrator and must submit it by the specified deadline.
How will the settlement amount be determined for each claimant?
The $5.54 billion settlement pool will be distributed based on factors like the total valid claims and interchange fees paid by the merchant during the class period. The exact percentage of recovery depends on the processing of all claims.
