Visa and Mastercard Users Set to Receive $1797 Direct Payment: A recent ruling from a US court has mandated Visa and Mastercard to pay a staggering $197 million in restitution to customers. This ruling comes as a result of unlawful additional fees that both companies collected from users who withdrew cash from ATMs in the US. The court determined that these extra charges were not legally justified, leading to the ruling that Visa and Mastercard reimburse their customers.
Visa and Mastercard Users Will Receive a $1,797 Direct Payment Soon
As part of the settlement, cardholders who were affected by these excessive ATM fees are now set to receive a direct payment of $1,797. Visa has been ordered to pay $104.6 million to its cardholders, while Mastercard must return $92.8 million to its users. The additional fees, which cardholders paid when using Visa or Mastercard to withdraw money from ATMs in the US, were deemed unlawful by the court.
Eligibility for Refunds and the Class Action Settlement Process
Not all Visa and Mastercard users will receive a refund. To be eligible, cardholders must meet two key conditions: they must have used a Visa or Mastercard debit card at an ATM in the US between October 1, 2007, and July 26, 2024, and paid non-refundable surcharges. The surcharge must have been levied by banks like JPMorgan Chase, Wells Fargo, or Bank of America, which are part of the Visa or Mastercard ATM network.
How to Request a Claim
Those who qualify for a refund should visit the official class action website to submit a claim. The process involves filling out an online form or downloading it, providing personal information, and signing an affidavit confirming that excessive surcharges were paid. Though no documents are required upfront, additional proof may be requested by the claims administrator at a later stage.
Key Deadlines to Remember
Claimants should be aware of important dates related to the settlement. The deadline to submit claims is January 22nd, while the final hearing to finalize the settlement is scheduled for January 24th. Make sure to submit your claim by the deadline to ensure participation in the refund process.
Visa Faces Additional Legal Challenges Over Alleged Debit Card Monopoly
In addition to the surcharge ruling, Visa is currently facing legal challenges in the US over accusations of suppressing competition and maintaining a monopoly in the debit card market. The Department of Justice has alleged that Visa engaged in anti-competitive practices, such as penalizing businesses for using rival payment networks and attempting to stifle potential competitors. These actions have led to inflated costs for American businesses and consumers. The case is part of the Biden administration’s increased focus on tackling monopolistic behavior and antitrust issues. Visa, which processes over 60% of debit card transactions in the US, generates substantial fees, with its debit division surpassing its credit division in revenue in 2022.
This ruling marks a significant moment for both Visa and Mastercard, as it holds them accountable for their unlawful actions, offering restitution to affected consumers.