Earlier this year, Visa and Mastercard agreed to settle a class action lawsuit for a whopping $5.5 billion – yes, that’s BILLION! The lawsuit claimed they charged US merchants excessive fees between 2004 and 2019. This is one of the largest class action settlements in US history, and most US merchants are eligible for a share if they accepted card payments during that time. Yet, many haven’t filed a claim. The process is fairly easy, and there’s still time to file a claim.
Are You Eligible? Probably!
If you accepted Visa and/or Mastercard payments between January 1, 2004, and January 25, 2019, you’re likely eligible to file a claim. The amount you might receive depends on factors like the fees you paid, the types of cards used, and the total number of claims filed by the deadline. Some merchants could even get back as much as their total Visa/Mastercard transaction fees for that period.
The eligibility criteria are pretty straightforward. If your business accepted Visa and Mastercard transactions during the specified period, you’re probably in. The complexity lies in calculating the amount you could be entitled to. Several factors come into play, such as:
- Transaction Volume: The more card transactions you processed, the higher your potential claim amount.
- Fee Structures: Different businesses paid different fees based on their agreements with payment processors.
- Types of Cards Used: Rewards cards, business cards, and other specialty cards often carried higher fees.
- Timeframe: The total duration you accepted these payments also affects your claim.
Understanding these factors can give you a clearer picture of what you might expect. Even if you’re a small merchant, it’s worth checking out. The settlement covers a long period, and even modest fees can add up over 15 years.
Most of the Money Is Still Unclaimed
Despite the massive size of the settlement, not enough merchants have filed claims, leading the court to extend the deadline to August 30. Why? Some merchants might not know about the settlement, some might not realize how much they could get, and others might find the process a bit intimidating.
If you’re surprised that such a significant amount remains unclaimed, you’re not alone. Here are a few reasons why:
- Lack of Awareness: Many merchants simply aren’t aware of the settlement or don’t know they are eligible.
- Complexity Myths: The process sounds complicated, so merchants might assume it’s not worth the hassle.
- Lost Notices: Eligible merchants should have received a notice in the mail. However, these notices can easily be missed, misplaced, or overlooked.
- Skepticism: Some might think it’s too good to be true or that they won’t get a meaningful amount.
In reality, the claim process is straightforward, and there’s no penalty for filing if you’re found ineligible. Given the duration covered and the substantial funds available, it’s worth taking a few minutes to see if you qualify.
How to File a Claim (It’s Easier Than You Think!)
Filing a claim in this settlement might sound daunting, but it’s actually pretty straightforward. Here’s how:
- Create an Account: Go to Payment Card Settlement and create an account.
- Use Your Notice: If you have a notice from the mail, go to “Enter Claimant ID and Control Number.”
- No Notice? No Problem!: If you didn’t receive a notice or don’t have it, go to “Provide TIN.”
- Fill Out the Form: Complete a short form with details about your business (like tax ID, business name, and contact info).
Once submitted, the process will start to determine how many transactions may be eligible for a refund and their total amount.
After submitting your claim, it’s important to check back for updates. Here’s what to do:
- Log Back In: One week after submitting your claim, log back into your account.
- Check Your Status: You’ll see a status indicator showing if your claim was confirmed as eligible, rejected, is still being processed, or if there were any issues.
- Review the Amount: If you’re eligible, you’ll see the total amount of interchange fees attributable to you. IMPORTANT: This is not the amount you’ll get in the settlement. That will be calculated later.
Finalizing Your Claim
If your claim is confirmed, you’ll have 30 days to either accept the calculated amount and finalize your claim or challenge the numbers if you believe there’s an error. It’s a good idea to work with your financial professional to ensure everything is accurate.
Once you finalize your claim, you’ll need to wait for the settlement distribution process. Keep an eye out for any communications from the claims administrator, as they may contact you for follow-up questions or documentation.
Don’t Let Your Money Go Unclaimed!
We encourage all eligible merchants to take advantage of this opportunity. The $5.5 billion settlement is a significant amount, and many merchants stand to benefit from filing a claim. The process is simple, there’s no penalty for filing, and the potential return can be substantial.
Scott Sanfilippo began his eCommerce journey in 1994 by co-founding one of the Internet’s first online retailers, TheFerretStore.com, which was acquired by PetCo in 2006. In 2001, he co-founded the eCommerce design and marketing firm Solid Cactus, which was acquired by web.com in 2009. Today, Scott is the General Manager of Your Store Wizards and lives in Delray Beach, FL. Scott can be contacted at scott@yourstorewizards.com.