Visa and Mastercard Settle ATM Fee Lawsuit for $167 Million
Visa and Mastercard will pay $167.5 million to settle a lawsuit alleging they conspired to inflate ATM access fees.Summary
Visa and Mastercard have agreed to a $167.5 million settlement to resolve a long-standing lawsuit accusing them of conspiring to artificially increase ATM access fees. The agreement potentially benefits millions of ATM users who were charged unreimbursed fees for using independent, non-bank ATMs since October 2007, with Visa contributing approximately $88.8 million and Mastercard around $78.7 million to a fund for eligible customers. The lawsuit, initially filed in 2011, challenged industry rules that allegedly hindered independent ATM operators from offering lower prices. Both companies have denied any wrongdoing. This settlement follows a previous $197.5 million agreement with a different group of ATM users over charges at bank-operated ATMs, and a $66 million settlement with Wells Fargo, Bank of America, and Chase in 2021. Plaintiffs' attorneys are seeking up to 30% of the fund, or about $50 million, for legal fees. In related news, Visa estimates that $11 trillion in cash remains in global circulation, which will continue to drive innovation in digital payments, while predicting that 2026 will be the first year that card payments account for half of all consumer payments worldwide.
(Source：Pymnts)