The Payment Card Interchange Fee Settlement marks a significant milestone in antitrust class-action history, offering relief to millions of U.S. merchants who have been paying purportedly excessive Visa and Mastercard interchange fees for over 15 years. Business owners can submit a claim with our filing partner, to secure a portion of the court-sanctioned $5.5 billion settlement before the submission deadline on August 31, 2024. If you plan to file a claim for the payment card interchange fee settlement, then this guide is for you.
Understanding Visa/MasterCard Antitrust Litigation?
The Visa/Mastercard Settlement, also known as the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, results from a class action lawsuit. After the court found that Visa and Mastercard had violated antitrust rules, forcing businesses to pay disproportionate interchange fees, a $5.54 billion compromise was negotiated.
Eligible claimants are those merchants who incurred these fees for transactions processed between January 1, 2004, and January 25, 2019. Compensation to claimants will be proportionate to the interchange fees they paid during this period.
Things Merchants Should Consider Before Filing a Claim
- Eligibility of Transactions:
The eligibility of claimed transactions may be influenced by several factors, such as the strength and availability of evidentiary proof, the geographical location where the card was accepted, whether the transaction was debit or credit, any special interchange rates, and the use of co-branded credit cards.
- Data Collection and Organization:
While claims to the settlement fund can be made without independently gathering data, for optimal recovery, it’s beneficial to explore available data.
This includes considering business acquisitions or other factors that might not be initially apparent to the claims administrator. Larger retailers, in particular, should leverage internally available data or information from their processors to establish a comprehensive record of their transactions.
- Calculation of Estimated Fees Paid and Supporting Documentation:
Given the extensive duration of the class period, retailers might encounter gaps in their data. Therefore, it’s crucial to support any claims with relevant business records and documentation.
The claims administrator will likely require details such as the amount of interchange fees paid, estimated rates of these fees, annual credit card sales volumes, and growth rate information, among other data.
How to File a Claim for the Payment Card Interchange Fee Settlement
Millions of American companies that took Visa/Mastercard credit cards between January 2004 and January 2019 and who have not previously opted out of the settlement are included in the class. The official website of the settlement, www.PaymentCardSettlement.com, provides comprehensive facts. Class members may submit the claim here for their share of the settlement, which will be computed over the given period of time-based on expected Visa and/or Mastercard interchange fees and other pertinent considerations.
The claims process is streamlined and can be completed online at PaymentCardSettlement.com, often in as little as five minutes. Here are some of the steps to file a claim:
- Visit PaymentCardSettlement.com.
- Click on “Submit a Claim.”
- If you received a claim form by mail, enter the provided claim ID and control number.
- If you did not receive a claim form, start the process by entering your taxpayer identification number.
- Enter your official business name and provide proof of authorization.
Alternative Filing Methods:
- Online with a QR Code: Over 18 million businesses received claim forms by mail with a QR code. Scanning this code directs business owners to a personalized, secure page on the portal, pre-filled with their business information.
- Online with a Tax Identification Number (TIN): Business owners who did not receive a claim form can use their TIN on the portal to confirm their identity and follow simple steps to submit their claim. Ensure you have the necessary documentation to prove you are authorized to file on behalf of the business.
- By Mail: Claims can also be submitted by mailing the completed claim form to:
- Email: [email protected]
- Postal Address: Payment Card Interchange Fee Settlement, PO Box 2530, Portland, OR 97208-2530.
Remember, the final date to submit claims is August 30, 2024. Ensure your claim is submitted by this deadline to be considered for a share of the settlement.
For many class members, if the data is accessible, the system will automatically prefill the interchange fees your business paid over the 15-year class period. The settlement administrator and Class Counsel offer free support to assist you through the process. The calculation of your claim amount will be based on a percentage of the interchange fees paid by your business during the Class Period, along with various other factors, such as the total number of valid claims submitted. Claim calculations and processing will occur after the claim period concludes, so your patience is appreciated.
To be eligible for a claim payment, a business must submit its claim before the claim period ends. Additionally, some class members may need to undertake further steps and provide additional data to demonstrate their portion of eligible payment card transactions and/or interchange fees during the specified period.
Filing a Claim With Host Merchant Services
To initiate our filing service or claims purchase service for the Visa and Mastercard settlement through Host Merchant Services (HMS) and Certificate Clearing Corporation (CCC) click here. You can also utilize an online calculator to estimate a bid for your claim. Input your total interchange fees paid during the class period or provide details such as your annual revenue, years in operation, and the percentage of sales processed using Visa/Mastercard. After reviewing the estimated bid, you can proceed to file your claim formally or explore options to monetize it by selling it to CCC.
To get started with us, you must enter your business information and sign the necessary forms. Host Merchant Services and Certificate Clearing Corporation will handle the rest, allowing you to receive funds promptly and track your claim’s progress.
Conclusion
The Payment Card Interchange Fee Settlement presents a crucial opportunity for U.S. merchants to recoup losses incurred from allegedly excessive interchange fees charged by Visa and Mastercard over 15 years. With the February 4, 2025 deadline swiftly approaching, eligible business owners must promptly file their claims to secure a portion of the $5.54 billion settlement.
To streamline the process, merchants can utilize various filing methods, including online submission via the official settlement website or through alternative channels like Host Merchant Services and Certificate Clearing Corporation. By ensuring the timely submission of claims and providing necessary documentation, merchants can maximize their chances of receiving compensation and contribute to resolving this landmark antitrust class action.
Frequently Asked Questions
Who is eligible to file a claim in this settlement?
Anyone in the United States who accepted Visa or Mastercard payments from January 1, 2004, to January 25, 2019, except for specific exclusions like dismissed plaintiffs, government entities, and certain financial institutions.
How can I file a claim for the Payment Card Interchange Fee Settlement?
Eligible members will receive a Claim Form via mail, which they can complete online using the provided credentials or mail back. Those who didn’t receive a form can start the process online by providing their Taxpayer Identification Number.
What information do I need to provide when filing my claim?
When filing, you may need to detail Interchange Fees Paid, merchant discount fees, merchant category code, and total Visa and Mastercard transaction volume or sales volume to help estimate attributable interchange fees.
When and how will the settlement payments be disbursed?
Once all claims are reviewed, payments will be made after the February 4, 2025, deadline. The amount depends on total valid claims, administration costs, taxes, attorney fees, and other expenses, with final amounts determined and approved by the Court.
Disclaimer: Claim forms are being delivered and are available online beginning December 1, 2023. Class members need not sign up for a third-party service in order to participate in any monetary relief. No-cost assistance is available from the Class Administrator and Class Counsel during the claims-filing period. See more information at Court-approved website: www.paymentcardsettlement.com.
