Visa and Mastercard Settle ATM Fee Lawsuit
Visa Inc and Mastercard Inc have proposed a $167.5 million settlement to resolve a long running class action lawsuit related to ATM access fees in the United States. The case accuses the two global payment networks of maintaining rules that kept ATM fees artificially high for consumers over many years. The proposed agreement has been filed in federal court and is still subject to judicial approval before it becomes final.
Allegations Against the Payment Networks
The lawsuit alleges that Visa and Mastercard enforced network rules that limited competition among ATM operators, particularly independent non bank ATMs. According to the plaintiffs, these restrictions prevented ATM owners from setting competitive surcharge fees, resulting in higher costs for consumers who relied on cash withdrawals. Millions of ATM users are believed to be affected by these practices.
How the Settlement Works
Under the proposed settlement, Visa would contribute approximately $88.8 million, while Mastercard would pay around $78.7 million into a shared settlement fund. If approved by the court, the money would be distributed to eligible consumers who paid unreimbursed ATM access fees at qualifying ATMs during the covered period. The exact amount each individual receives would depend on how often they incurred these fees and over what time frame.
Both Visa and Mastercard have denied any wrongdoing as part of the agreement. The companies maintain that their ATM rules were lawful and designed to ensure security, transparency, and consistency across the payments network. As with many large class action settlements, the proposal allows the companies to avoid prolonged litigation while closing a costly and time consuming legal chapter.
Long History of Litigation
This case has a long legal history, dating back to its original filing in 2011. Over the years, it has become part of a broader set of lawsuits examining how ATM fees are structured and whether major payment networks exert too much control over pricing. In a related but separate case, Visa and Mastercard previously agreed to pay $197.5 million to settle claims involving ATM fees at bank operated machines. That earlier settlement addressed different allegations but reflected similar concerns around fee competition.
Despite these settlements, some litigation related to ATM fees continues, particularly cases brought by independent ATM operators. These claims focus on whether network rules unfairly restricted their ability to set prices freely and compete in the market. The outcomes of these cases could further shape how ATM fees are regulated in the future.
Who Benefits and How Consumers Are Compensated
For consumers, the settlement highlights an issue that has long been a source of frustration. ATM fees are often incurred unexpectedly, especially when withdrawing cash from machines outside a customer’s bank network. These fees can include both a surcharge from the ATM owner and additional network related costs, making simple cash withdrawals expensive over time.
The next step in the process is court review. A federal judge will evaluate whether the settlement is fair, reasonable, and adequate for the affected class members. If approved, settlement administrators will begin notifying eligible consumers and outlining the process for submitting claims and receiving compensation.
Why This Settlement Matters
The case draws attention to the broader influence of payment networks on everyday financial transactions. While individual ATM fees may seem small, repeated charges over many years can add up to significant amounts for consumers, particularly those who rely heavily on cash. If finalized, the agreement could represent a meaningful outcome for consumers impacted by high ATM fees and serve as another signal of increasing scrutiny on how major payment networks structure rules that influence costs across the financial system.
0 Comments