Visa and Mastercard have agreed to pay a combined $167.5 million to settle a class action lawsuit that alleged the two payment giants worked together to keep ATM access fees higher than they should have been.
The proposed settlement was submitted in federal court in Washington, D.C., and still requires approval from a judge before it becomes final. If approved, the agreement could compensate millions of people who paid ATM “access fees” that were not reimbursed when withdrawing cash from independent, non-bank ATMs.
Under the terms of the deal, Visa would contribute about $88.8 million, while Mastercard would add roughly $78.7 million. The settlement fund would be distributed to eligible customers who completed qualifying ATM transactions dating back to October 2007.
The lawsuit dates to 2011 and is one of several related cases in the same court. Consumers argued that certain industry rules prevented independent ATM operators from competing on price, limiting their ability to offer lower fees. Visa and Mastercard denied wrongdoing.
This is not the first settlement connected to these disputes. Last year, the two companies agreed to pay $197.5 million to resolve similar claims from a different group of ATM users who said they were overcharged at bank-operated ATMs. In 2021, multiple banks also agreed to pay $66 million to settle related claims in the broader litigation.
Plaintiffs’ attorneys described the deal as a strong outcome given the risks of continuing the case, and said they intend to request up to 30% of the fund around $50 millionin legal fees.
Meanwhile, another lawsuit brought by independent ATM owners and operators remains ongoing in the same court. Separately, Visa is also facing other antitrust scrutiny, including a U.S. government case alleging it illegally dominated the U.S. debit card market claims it has denied.
