Visa and MasterCard users are in luck. Recently, the US courts ruled that the fees we’ve been paying for years to use their cards are unfair, so these companies will be forced to refund a large sum of money to their customers as compensation for these excessive charges.
Here, we will tell you everything you need to know to claim your share of the compensation.
Where does the conflict come from?
It turns out that for years, users have had to pay an extra fee to withdraw cash from ATMs. After much debate, the court ruled that these fees were illegal and imposed unjustified costs on consumers, i.e., they were charging you money for using your own money!
Who is going to receive the money?
Users who used Visa or Mastercard debit cards and were forced to pay non-refundable fees between October 1, 2007 and July 26, 2024, with an additional requirement that the fee be charged by an ATM network such as JPMorgan Chase, Wells Fargo, or Bank of America.
So, if you believe you may be eligible for this refund (we understand that you will not remember whether or not you were charged something for 14 years), please follow the process that each bank will have prepared. It is expected that this process will be transparent and efficient for all users.
What does the agreement entail?
Users who meet the above criteria will be refunded a percentage of the $197 million that the Court has ordered these two companies to pay.
It should be noted that refunds are not distributed equally between companies, but Visa will be forced to return $104.6 million to its customers, while Mastercard will return $92.8 million to those affected by the use of its cards.
This decision highlights the debate over the fact that these fees were a significant source of revenue for both companies, but consumer advocates (and consumers) were completely opposed to them. Finally, they have managed to eliminate these usage fees.
How did the fees work?
It was very simple: each company charged differently. Visa charged cardholders a fee based on the volume of usage, so those who used the card the most during the estimated date received the most. Mastercard charged issuing institutions a percentage of the total volume of transactions processed globally.
What’s next for users?
Affected users will have to wait for a notification from their banks detailing how to proceed.
To claim your refund, you may need to find or keep documents proving that these transactions occurred, so you’ll have to go to the bank!
For the time being, this case has established a historic precedent in the regulation of bank fees, and more importantly, in the protection of consumer rights, and it may also serve as the first step in investigating other financial practices that have existed for years.
In the future, it will be critical (and advice for everyone) to be fully aware of what a service will provide (or take away in this case), because luck will not smile twice.
197 million dollars is a victory for consumers who were affected by these unfair fees, and it only emphasizes the importance of making financial transactions as transparent as possible.
It is critical not to remain silent in the face of injustice, and the first step has already been taken. Now, let’s celebrate our victory.
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