WHAT IS THIS CASE ABOUT?
The lawsuit originated as a dispute between merchants, card-issuing banks, and payment card associations over interchange fees. Merchants claimed that card associations set interchange fees and rules governing payment card acceptance in ways
that amounted to illegal price fixing. Before the case was fully litigated, both sides reached a negotiated settlement. The settlement provides that Visa and MasterCard contribute to a $5.54 billion-dollar cash settlement fund, which will
be distributed to merchants who accept the settlement.
WHAT IS INTERCHANGE?
Interchange is a swipe fee that every merchant pays whenever they accept payment from a customer who is using a credit or debit card. Interchange is typically between 1 and 2 percent of the transaction amount. It is automatically deducted from
the money a merchant receives when a transaction is settled.
WHO IS SUING WHOM IN THIS CASE?
In 2005, a number of merchants filed separate lawsuits against card associations and issuing banks claiming they were engaging in unfair practices. Because the complaints in these various cases were essentially the same, they were consolidated
into a single class action lawsuit. In the class action lawsuit, 19 named plaintiffs, representing the class of all merchants, is suing Visa, MasterCard, and a number of card-issuing banks.
WHY IS THIS CASE A CLASS ACTION?
A class action enables a small number of plaintiffs to sue on behalf of a larger group with similar interests. When this case began, a number of merchants were suing, each making essentially the same complaint. The court decided to combine all
their cases into a class action in which 19 named plaintiffs would represent the entire class of merchants who accept debit and credit cards. The outcome of the case will apply to all members of the class.
HOW DO I FILE A CLAIM?
The case is on appeal and a Class Member cannot currently file a Claim.
CAN I FILE A CLAIM NOW?
No. The Court will approve a claim form and set a deadline for members of the Rule 23(b)(3) Settlement Class to submit claims. In order to receive a payment, you must submit a Claim Form.The case is on appeal and a Class Member cannot currently file a Claim.
CAN I OBJECT IF THE CLAIMS ADMINISTRATOR’S OFFER IS NOT FAIR?
If your claim is denied, or if you feel the offer from the Claims Administrator is inaccurate in any way, a challenge can be filed directly with the Claims Administrator. We will advise you on all documentation and data that supports your case.
The Claims Administrator will review your challenge and make a judgment as to whether your original claim should be denied, approved, or adjusted.
CAN I APPEAL THE CLAIMS ADMINISTRATOR’S DECISION?
If your challenge to their initial offer is rejected, you may appeal the Claims Administrator’s decision, and if necessary, take the Claims Administrator to court.
WHEN CAN I EXPECT TO RECEIVE MY SHARE OF THE SETTLEMENT?
At this point, it is not known exactly how long it will take to distribute the cash settlement. As this information becomes available we will update our site.
IF I PRE-REGISTERED ON MY OWN AT THE CLAIMS ADMINISTRATOR’S WEB SITE, CAN I STILL USE A THIRD PARTY FILING SERVICE?
Yes. You’ll be able to specify at the time the official claim form is submitted.
