Visa and Mastercard have reached a settlement of $167.5 million in a class-action lawsuit. This lawsuit accused them of working together to keep ATM fees too high. The settlement has been submitted to a federal court in Washington and is waiting for the judge’s approval.
The deal aims to compensate millions of ATM users who faced unreimbursed fees while withdrawing cash from independent ATMs. Visa will contribute about $88.8 million, while Mastercard will add around $78.7 million to the settlement fund. Eligible customers who made qualifying ATM transactions since October 2007 could see some of this money.
This lawsuit has a bit of history. It started back in 2011, when consumers challenged the rules set by Visa and Mastercard. These rules supposedly stopped independent ATM operators from offering lower fees. While both companies deny any wrongdoing, they have faced scrutiny before. Just last year, they paid $197.5 million to settle another case from users who claimed they were overcharged at bank ATMs.
Interestingly, in 2021, several banks agreed to pay $66 million to settle similar claims against them. The plaintiffs’ lawyers describe the recent settlement as a strong outcome given the risks of continuing the lawsuit. They plan to request about $50 million in legal fees, which is 30% of the fund.
A third lawsuit concerning independent ATM owners is also pending in the same court. Meanwhile, Visa is dealing with other antitrust issues, including a separate case from the U.S. Justice Department, which accuses it of monopolizing the debit card market. Visa has denied these claims as well.
According to a survey by the National ATM Council, around 50% of users find ATM fees at independent locations frustrating, showing a growing demand for change in this area. Many consumers are drafting discussions on social media platforms, expressing their views on how these fees impact their daily finances. As conversations about fair pricing in the ATM space continue to grow, it’s clear that users are paying close attention to these legal developments.
For a deeper dive into the effects of ATM fees and broader financial industry trends, the Consumer Financial Protection Bureau provides valuable insights into consumer rights and financial responsibility.
