Visa and Mastercard handle more than half of all global network payments. Both of the companies were dealt a huge blow recently when an American judge told them they had to repay cardholders a huge $197 million.
With the information we have access to now, an American court told VISA and Mastercard to return the money that was taken from their users’ and customers’ cards earlier this year under the guise of higher fees.
Visa and Mastercard users will receive a $1,797 direct payment soon
The US court said that the extra fees that the two companies were charging their customers were illegal. Sources say that as part of the settlement, Visa will pay its customers $104.6 million and Mastercard will return $92.8 million to cardholders.
In the United States, you have to pay extra fees when you use a Visa or Mastercard to get cash from an ATM. Based on the court’s decision, the extra fee was illegal, and Visa and Mastercard had to pay the money back.
People who have taken cash out of bank-run ATMs since 2007 are part of the $197 million settlement. Keep in mind that not all Mastercard and Visa users will get their money back. In order to get a refund, you must be able to:
- Between October 1, 2007, and July 26, 2024, cardholders who used a Visa or Mastercard debit card at an ATM in the United States paid a non-refundable surcharge.
- Banks like JPMorgan Chase, Wells Fargo, or Bank of America that are part of the VISA or Mastercard ATM network are required to levy fees.
Based on the information given, Visa either charges the card issuer a fee based on the card’s volume or a fee for each transaction. Mastercard, on the other hand, charges card-issuing institutions based on a percentage of global dollar volume. This is the total amount of money that was spent with cards during a certain time period.
Which steps should users follow to request claims regarding their payments?
Beneficiaries should go to the official website for the class action and either fill out the form online or download it and send it to ATM Surcharge Settlement.
Give your contact information and swear under oath that you paid too much in surcharges; this document is legally binding and must be correct. The claims administrator can ask for more proof at a later time, even if you do not have to give them any right away.
Finally, people who want to get the Visa and Mastercard settlement payment should be aware of a few important dates. For starters, the deadline to file a claim was January 22, and the final hearing to finalize the settlement was January 24.
Do not forget that you need to send in the application by the due date in order to be eligible for the refund.
The US has accused Visa of debit card monopoly
Visa is being sued in the US for allegedly illegally stifling competition in order to keep its dime card market share. Visa was accused of punishing companies that tried to use other payment networks and paying possible competitors to stay ahead in the market.
The Department of Justice says that the actions have slowed down innovation and made things more expensive for American businesses and consumers. The latest case against Visa was brought by the Biden administration.
This administration has been tougher than others on monopolistic issues, which are called antitrust issues in the US.
People in other parts of the world, like Europe and Australia, have also sued and looked into the company’s actions because they are unfair to other businesses.
The complaint says that the company handles more than 60% of debit card transactions in the US and makes $7 billion a year in fees. Its debit card division made more money than its credit card division in 2022 and was very profitable.
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