Unlocking hidden savings: How businesses can benefit from the $5.5 billion Visa/Mastercard settlement

In a landmark decision, Visa and Mastercard have agreed to a $5.5 billion settlement to resolve claims that they charged businesses excessive fees for processing credit card transactions.

This settlement, which covers transactions from January 1, 2004, to January 25, 2019, presents a significant opportunity for businesses to reclaim some of the hidden costs they have incurred over the years. Here’s how your business can take advantage of this settlement and potentially recover thousands of dollars.

Understanding the settlement

The class-action lawsuit against Visa and Mastercard alleged that these companies engaged in anti-competitive practices by setting fixed fees for processing credit card transactions. These practices led to inflated costs for merchants, who unknowingly paid higher fees over 15 years. The settlement aims to compensate businesses for these overcharges, allowing them to reclaim some of the fees paid during this period.

Who is eligible?

Any business that accepted Visa or Mastercard credit or debit cards between January 1, 2004, and January 25, 2019, is eligible to file a claim. This includes a wide range of industries, including restaurants, retail stores, medical offices, gas stations and hotel groups. Even businesses that have since closed or gone bankrupt can submit a claim, provided they accepted these cards during the specified period.

How much can you recover?

The amount a business can recover varies based on its processing volume. Estimates suggest that businesses could recover between $3,000 and $5,000 for every $1 million in credit card charges processed from 2004 to 2019. While this might seem modest on a per-million basis, it represents a significant opportunity to reclaim hidden fees paid over many years. For businesses with high transaction volumes, this could translate into substantial savings.

The claims process

Filing a claim is straightforward but requires timely action. The deadline to file a claim was recently extended to February 4, 2025. At this stage, businesses need only provide their employer identification number (EIN) to initiate the claim process. No proof of hidden fees is necessary at this point, simplifying the initial steps.

To file a claim, businesses should visit the official settlement website, where they can find detailed instructions and submit their claims online. It’s advisable to consult with financial advisors or firms specializing in credit card claims to help ensure all necessary information is accurately provided and to maximize the potential recovery.

Why act now?

The sooner businesses file their claims, the sooner they can benefit from the settlement. Given the pro rata nature of the settlement, the actual amount received will depend on the total number of claims filed. Therefore, early filers may have a better chance of securing a larger share of the settlement fund.

Moreover, reclaiming these fees can provide a much-needed financial boost, especially in today’s economic climate when businesses are facing increased costs across the board. The recovered funds can be reinvested into the business, helping to offset other expenses or support growth initiatives.

How Wipfli can help

Don’t miss out on this chance to recover funds that rightfully belong to your business. Wipfli advisors can help you take the first step toward reclaiming your share of the settlement. Contact us today to get started.