The Rule 23(b)(3) Class Plaintiffs have brought a significant antitrust lawsuit against Visa and Mastercard, alleging anti-competitive practices that led to inflated interchange fees. Interchange fees are the costs merchants pay to card-issuing banks for each credit or debit card transaction. Plaintiffs argue that Visa and Mastercard conspired with banks to fix these fees at artificially high levels, violating antitrust laws and financially harming businesses that accept their cards.

This class action lawsuit covers the period from January 1, 2004, to January 25, 2019. The plaintiffs seek monetary relief for the alleged overcharges, aiming to compensate affected businesses for the inflated costs they were forced to absorb.

On December 13, 2019, the court granted class certification under Rule 23(b)(3), allowing plaintiffs to pursue their claims collectively. This decision recognized that common legal and factual issues related to Visa and Mastercard’s conduct predominated over individual issues, making a class action the most efficient way to address the widespread harm.

In December 2023, the claim filing window opened, with notices sent to approximately 18 million class members. This follows a major development on Tuesday when Visa and Mastercard announced a settlement with U.S. merchants, potentially ending nearly two decades of litigation. The settlement involves lowering and capping interchange fees and allowing small businesses to collectively bargain for rates, similar to large merchants. This settlement is valued at close to $30 billion in savings for merchants.

However, industry groups caution that the reduced fees will only last for a limited period—three to five years—after which fees will revert to current levels. Jeff Brabant, vice president of federal government relations at the National Federation of Independent Business, emphasized that while the settlement is a positive step, it does not address the long-term anti-competitive practices. As long as Visa and Mastercard set the interchange rates, small businesses will continue to face high costs.

The settlement stems from a 2005 lawsuit alleging that merchants paid excessive fees to accept Visa and Mastercard credit cards, violating antitrust laws. In 2018, Visa and Mastercard agreed to pay $6.2 billion as part of this long-running suit. The recent settlement includes additional terms that cap fees until 2030 and require negotiations with merchant-buying groups.

For businesses that accepted Visa or Mastercard payments during the specified period, this class action provides an opportunity to seek compensation for the excessive fees paid.