HPP: Visa and Mastercard are the two largest international network payment processors. Both publicly traded companies recently suffered a serious setback when an American judge mandated that they pay back an astounding $197 million to cardholders.
An American court ordered VISA and Mastercard to return the money that was deducted from their users’ and customers’ cards earlier this year under the pretense of increased fees, based on the evidence that is currently available.
Users of Visa and Mastercard will shortly get a straight payment of $1,797
The US court ruled that the additional fees that the two companies were charging their clients were illegal. Sources claim that Visa will pay $104.6 million to its consumers as part of the settlement, while Mastercard will repay $92.8 million to cards.
There are extra costs associated with using a Visa or Mastercard to take out cash from an ATM in the US. The court ruled that the extra charge was illegal, and Visa and Mastercard were compelled to pay the money back.
Customers who have withdrawn cash from bank-operated ATMs since 2007 are parties to the $197 million settlement. It’s crucial to remember that not all Visa and Mastercard customers will get their money back. The following are the two requirements for a refund:
- Cardholders who used a Visa or Mastercard debit card at an ATM in the US between October 1, 2007, and July 26, 2024, were required to pay a non-refundable surcharge.
- Fees must be charged by banks that are a part of the VISA or Mastercard ATM network, such as JPMorgan Chase, Wells Fargo, or Bank of America.
Visa charges the card issuer either per transaction or based on the volume of the card, according to the information provided.
Nonetheless, Mastercard bills card-issuing organizations based on the proportion of worldwide dollar volume—that is, the total amount of all card transactions during a specific time frame.
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What procedures do users need to follow in order to submit claims for their payments?
Beneficiaries can download the form and submit it to ATM Surcharge Settlement, complete it online, or visit the official class action website to receive reimbursement.
Since this document is legally binding and needs to be precise, please include your contact details and sign an oath attesting to the fact that you paid excessive surcharges.
The claims administrator may subsequently request further documentation, even if you are not required to submit any at this time.
Lastly, there are several important dates that customers should be aware of if they want to receive the Visa and Mastercard settlement payment. First, the deadline for filing claims was established for January 22nd, and the final hearing to complete the settlement was held on January 24th.
Keep in mind that in order to be eligible for the reimbursement, you must finish the application by the due date.
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Visa has been charged with debit card monopoly by the US
In the US, Visa is facing legal action for allegedly unlawfully stifling competition in order to maintain its monopoly on the debit card industry. In order to preserve its market dominance, Visa was accused of paying potential competitors and punishing companies who tried to use alternative payment networks.
The Department of Justice claims that the actions have stymied innovation and caused significant additional expenses for American consumers and businesses.
The lawsuit against Visa is the latest from the Biden administration, which has taken a more aggressive stance than previous administrations in addressing monopolistic issues, which are referred to as antitrust in the US.
The company’s operations have also been the focus of inquiries and lawsuits by competition regulators and merchants in other parts of the world, including Europe and Australia.
According to the complaint, the company handles more than 60% of debit transactions in the US and makes $7 billion in fees each year. Its debit card business was very profitable in 2022 and surpassed its credit card business in terms of revenue.