$5.6 Billion Credit Card Settlement Allows Americans to Obtain One-Time Cash Payment

.6 Billion Credit Card Settlement Allows Americans to Obtain One-Time Cash Payment

AMERICANS may be eligible to bank a one-time cash payout following a $5.6billion credit card settlement.

The settlement resolved claims that Visa and MasterCard overcharged retailers on interchange fees, or swipe fees, when shoppers used credit or debit cards, and barred retailers from directing customers toward cheaper means of payment.

Mastercard and Visa debit or credit card users past and present may be eligible for a payoutCredit: Getty

Settling retailers would be barred from bringing further claims from within the 15-year class period, and for five more years after the settlement became final, court papers show.

If you took Mastercard or Visa debit or credit cards any time between January 1, 2004 and January 25, 2019, you may be eligible to recover money charged by the companies and their banks.

Simply fill out this form to submit your application.

The deadline to file a claim is May 31, 2024.

SWIPING COST CUT

It comes after Visa and Mastercard have reached a landmark $30 billion antitrust settlement on fees that merchants pay.

This agreement would limit the credit and debit card fees for merchants in the U.S.

The amount paid on these fees would decrease by $30 billion over five years, according to CNN Business.

They are also set to be lowered by a minimum of 0.04% for at least three years.

Visa and Mastercard would also have to freeze the swipe fee rate as it was on December 31, 2023, for five years.

Historic number of Americans apply for free money from huge $725m settlement – but there are strict requirements on cash

Small businesses would also be allowed to negotiate these charges with companies.

Merchant fees are an extra cost that stores pay when a customer uses a credit or debit card.

These are a percentage of the transaction cost and they can typically range between 2% and 4%.

Although this settlement would not directly impact shoppers, some merchants have argued these fees have led them to raise prices for shoppers.

Some retailers have argued that the current proposed settlement would not make a big enough impact.

Stephanie Martz the Chief Administrative Officer for the NRF, a trade group that represents retailers, argued this was not enough.

She claimed the savings would come “to pennies on the dollar.”

“The fact remains that these fees are an unfair business practice that harms merchants and consumers and benefits banks,” she said.

Who is eligible?

If you took Mastercard or Visa debit or credit cards any time between January 1, 2004 and January 25, 2019, you may be eligible to recover money charged by the companies and their banks.

Simply fill out this form to submit your application.

The deadline to file a claim is May 31, 2024.

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