- A U.S. District Court gives preliminary approval to a proposed settlement under which Visa (NYSE:V +1.2%), Mastercard (NYSE:MA +1.5%) and some banks agree to pay up to $6.24B to resolve allegations that they charged merchants excessive fees.
- The settlement amount is subject to deduct for some merchants that exclude themselves from the settlement, but that deduction won't exceed $700M, according to a statement from the U.S. District Court for the Eastern District of New York.
- The fund, after taking out court-awarded attorneys' fees and costs, will be used to pay valid claims of merchants that accepted Visa and Mastercard credit and debit cards at any time between Jan. 1, 2004 and Jan. 25, 2019.
- The settlement was originally announce in September 2018. A court hearing is scheduled for Nov. 7, 2019 to decide on whether to approve the proposed settlement.
- Previously: Retailers object to swipe fee settlement (Sept. 18, 2018)