Used an ATM since 2007? Visa and Mastercard may owe you cash

Visa and Mastercard have agreed to pay $167.5 million to settle a long-running class action lawsuit. The suit, which was first filed  back in Oct. 2011, accused the two major credit card companies of conspiring to keep ATM fees artificially high. 

The proposed settlement, filed on Thursday in Washington, if approved, it will mean an end to “almost fourteen years of vigorously contested litigation.” The lawsuit alleged that both companies “participated in an unlawful conspiracy” involving Visa and Mastercard blocking independent ATM operators from offering lower prices. 

If approved, the settlement will have Visa and Mastercard pay millions to ATM users who say they were charged an unreimbursed access fee to withdraw cash from independent, non-bank ATMs. Per a Guardian report, Visa is set to pay 53% of the settlement, $88.8 million, while Mastercard will contribute 47%, or $78.7 million. 

In the settlement, attorneys for the plaintiffs called the settlement “an excellent result in light of the risks of continued prosecution.” Attorneys for the defendants did not immediately reply to a Fast Company request for comment.

Last year, Visa and Mastercard also agreed to pay $197.5 million to ATM users who claimed they were overcharged at bank-operated ATMs. At the time, the plaintiffs’ attorneys said the settlement will “deliver immediate and assured relief.” That settlement followed a 2021 settlement with major banks, such as JP Morgan Chase, Bank of America, and Wells Fargo, agreeing to pay $66 million to settle similar claims. 

Still, the lawsuits against the two major credit card companies are not over, as a third lawsuit, launched by independent ATM owners and operators, is pending against the companies. “The rules prevent ATM operators from passing on the savings to cardholders when their ATM transactions are handled by an ATM network other than Visa or Mastercard,” Jonathan Rubin, an attorney for the plaintiffs said in 2023 when announcing that suit will continue to move forward. At the time, the attorney added that it will ask the court to eliminate rules which all but eliminate competition. 

Despite Thursday’s settlement, the companies have denied any wrongdoing.

source https://www.fastcompany.com/91463788/used-an-atm-since-2007-visa-and-mastercard-may-owe-you-cash