The settlement resolves long-standing allegations that the card networks colluded to inflate ATM access fees for consumers. Millions of users who paid out-of-network fees since 2007 may be eligible for reimbursement from the massive fund. This accord marks the latest multi-million dollar payout in a series of antitrust legal challenges targeting the payments industry.
Visa and Mastercard have agreed to a combined $167.5 million settlement to resolve a major class-action lawsuit. The legal action accused the financial giants of engaging in anticompetitive practices to artificially maintain high ATM access fees. This alleged conspiracy ultimately burdened consumers with higher costs for withdrawing cash from independent, non-bank automated teller machines.
The proposed agreement was formally submitted to a federal district court in Washington, D.C., and now awaits final judicial approval. Upon approval, a settlement fund will be established, with Visa contributing approximately $88.8 million and Mastercard funding about $78.7 million. The payout mechanism is designed to compensate potentially millions of ATM users nationwide who incurred unreimbursed access fees on transactions dating back to October 2007.
This latest settlement represents a continuing trend of legal accountability for the card networks concerning fee structures. Just last year, Visa and Mastercard agreed to a separate $197.5 million resolution for similar claims related to overcharges at bank-operated ATMs. Furthermore, several major banks reached a $66 million settlement in 2021 for their alleged role in the overarching litigation. A related case brought by independent ATM operators remains active in the same court.
The ATM fee settlement arrives as Visa confronts other significant legal battles, including a high-profile antitrust lawsuit from the U.S. Justice Department. That case alleges Visa unlawfully monopolized the U.S. debit card market, claims which the company continues to vigorously deny. These cumulative legal challenges signal heightened regulatory and judicial scrutiny on the competitive practices within the digital payments ecosystem.
