Visa and Mastercard to pay $167.5m to settle lawsuit over ATM fees

Visa and Mastercard have agreed to a $167.5 million settlement to resolve a class-action lawsuit accusing them of conspiring to maintain artificially high ATM access fees. The proposed settlement, filed in federal court in Washington, D.C., awaits judicial approval and would potentially reimburse millions of ATM users who incurred unreimbursed access fees at independent, non-bank ATMs. Visa will contribute approximately $88.8 million, while Mastercard will contribute around $78.7 million to a fund for eligible customers with qualifying transactions since October 2007.

The lawsuit, originally filed in 2011, alleged that Visa and Mastercard’s industry rules prevented independent ATM operators from offering lower prices. Both companies deny any wrongdoing. This settlement follows a previous $197.5 million agreement to resolve claims from users overcharged at bank-operated ATMs and a $66 million settlement with several banks.

Plaintiffs’ attorneys have hailed the settlement as a positive outcome, seeking up to 30% of the fund, or $50 million, in legal fees. A separate lawsuit brought by independent ATM owners and operators remains pending, and Visa is also facing an antitrust lawsuit from the U.S. Justice Department regarding its alleged monopolization of the debit card market.

(Source：The Guardian)