Visa and Mastercard to Pay $197.5m in ATM Fee Settlement

Visa and Mastercard have agreed to pay a combined $197.5 million to settle a class action lawsuit in the United States concerning allegations of price-fixing ATM fees. 

The settlement pertains to individuals and entities charged unreimbursed access fees for cash withdrawals at bank-operated ATMs since October 1, 2007. Plaintiffs allege that Visa and Mastercard implemented “Non-Discrimination Rules” that effectively increased ATM access fees for users, according to the filing by the plaintiffs’ lawyers.

The settlement, which requires court approval, will resolve all claims against the defendants and conclude the long-standing case, originally filed in October 2011. Visa and Mastercard have denied any wrongdoing.

If approved, Visa will pay 53% of the settlement amount, or $104.6 million, while Mastercard will cover the remaining 47%, or $92.8 million. The funds will be placed in a Settlement Fund and distributed among class members who submit valid claims.

Previously, the plaintiffs secured a $66.74 million settlement with US banks JP Morgan, Wells Fargo, and Bank of America in August 2022, bringing the total recovery in the case to $264.24 million.

Visa did not respond to requests for comment, and Mastercard declined to comment on the settlement.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us