Visa and Mastercard, two of the world’s largest payment card service corporations, are facing a major settlement over allegations of inflating ATM fees, which could result in cash back for eligible customers.
The affected customers filed a class action lawsuit, and the case was settled for $197.5 million, which will be divided among the qualifying victims in proportion to the impact of the additional fees on them.
The Visa and Mastercard suit
Visa and Mastercard do not issue cards, extend credit, or set rates and fees for consumers, but the banks and financial institutions they work with do, so the additional fees they charged customers through ATM surcharges and swipe fees were illegal.
Customers have a contract with their bank that specifies all fees, not with the payment card service, so they could not have agreed ahead of time to pay this additional money.
Consumers paid excessively high fees when withdrawing cash, and retailers had to pay higher fees for accepting card payments, reducing their profit margins.
The case was settled for the aforementioned $197.5 million (divided between the two companies; Visa agreed to pay $104.6 million toward the settlement fund, and Mastercard will pay out $92.8 million) to end the legal proceedings, but neither company admitted to any wrongdoing, as is customary in class action suits of this nature.
Who is eligible to claim part of the settlement?
Not everyone affected by the fees will be able to claim a portion of the settlement. Certain conditions qualify or disqualify customers. You may qualify for a payout if:
– You paid an unreimbursed surcharge when using a U.S. ATM with a Visa or Mastercard debit card between October 1, 2007, and July 26, 2024.
– The fee was charged by a bank in the Visa or Mastercard ATM network, such as JPMorgan Chase, Wells Fargo, or Bank of America.
You will not be eligible if:
– Your ATM fees were already reimbursed.
– Your card was issued outside the U.S.
A previous settlement regarding ATM fees involved major US banks such as JPMorgan Chase, Wells Fargo, Bank of America, and others.
This settlement had a payout of more than $66 million, and if you filed and received payment in the previous ATM settlement, you are automatically eligible for this one. However, if you have incurred additional ATM surcharges since then, you will need to file another claim.
How to File a Claim
Filing is simple, and you do not need to provide any documentation to begin with. You can file online by visiting the Class Action suit’s website and completing the online form provided, or by mail by downloading the same document, filling it out, and mailing it to the following address:
ATM Surcharge Settlement
P.O. Box 170500
Milwaukee, WI 53217
According to The Sun, when you file the document, in addition to providing your contact information and answering some questions about your ATM fees, you will sign under oath confirming that you paid excessive surcharges, making it legally binding. It must contain only truthful information.
Keep in mind that even if documentation is not requested at the start of the process, the claims administrator may request additional proof at a later date to substantiate your claim or allocate your payment, so have it on hand.
The deadline for filing a claim is January 22, 2025, with the final hearing to approve the settlement scheduled for January 24, 2025.
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