Visa and Mastercard to Pay $167.5 Million to Settle ATM Fee Lawsuit
Visa and Mastercard will pay a combined $167.5 million to settle a class-action lawsuit alleging that they conspired to keep ATM access fees artificially high. About $88.8 million will come from Visa and $78.7 million from Mastercard, to be distributed to eligible consumers with qualifying ATM transactions since October 2007.
The proposed settlement was filed in federal district court in Washington and requires approval from a judge. The lawsuit was originally filed in 2011 as part of three related cases in the D.C. federal court, accusing the companies of implementing industry rules that blocked independent ATM operators from offering lower prices. Both Visa and Mastercard deny any wrongdoing.
Last year, Visa and Mastercard agreed to pay $197.5 million to resolve related claims involving overcharges at bank-operated ATMs. Additionally, several banks paid $66 million in 2021 to settle similar claims within the same litigation. A third lawsuit by independent ATM owners and operators is currently pending in the same court.
Plaintiffs’ attorneys described the settlement as an excellent result given the risks of continued prosecution and plan to seek up to 30% of the fund (about $50 million) in legal fees.
