Payment Card Interchange Fee and Merchant Discount Antitrust Litigation
The causation theory in MDL-1720 hinges on the argument that Visa and Mastercard engaged in anticompetitive practices by fixing interchange fees and imposing restrictive rules, which artificially inflated transaction costs for merchants. These practices suppressed competition, leading to economic harm characterized by increased operational costs, reduced profit margins, and limited pricing flexibility for merchants. The courts have examined whether these conduct violated antitrust laws, specifically whether the fixed fees and no-surcharge rules constituted illegal price fixing and monopolization, thereby causing economic harm through market distortion and increased costs.
65
Pending actions
135
Total actions filed
Active
Status
10/19/2005
Established
Filing deadline
Claims filing deadlines for the current settlement cycle are around May 31, 2024. The original case filings date back to June 2005, with statutes of limitations generally ranging from 3 to 6 years depending on jurisdiction, but the primary claims filing window appears to have closed, although ongoing distributions and future claims may still be possible.
Who qualifies
Merchants that accepted Visa, Mastercard, and Apple Pay during the relevant period, primarily from December 18, 2020, to the date of final judgment, including merchants accepting digitally-stored Visa and Mastercard cards via Apple Pay. The class broadly encompasses merchants accepting payment cards and digital wallets utilizing Visa and Mastercard networks.
Products involved
- payment cards
- interchange fees
- merchant discounts
Alleged injuries
- inflated transaction costs for merchants
- higher prices for consumers
- reduced competition in payment networks
Bellwether trials
The MDL-1720 involves ongoing bellwether trials scheduled throughout 2026, with some cases resulting in significant settlements, including a $6 billion settlement, indicating active litigation and resolution efforts.
Settlement landscape
The settlement amount is approximately $5.54 billion to $6.24 billion, with the final approval granted in December 2019. The settlement includes provisions to reduce interchange fees and modify network rules, providing relief to merchants and restoring competitive practices.
This page is generated from the official JPML pending-MDL report and public court records, refreshed monthly. It is provided for attorney reference and is not legal advice.
