Act Now: Court Accepting Objections to Recently Proposed Visa/Mastercard Settlement

Two massive class actions between retailers and Visa/Mastercard have been pending in Federal court for 20 years. Both suits have proposed settlements pending before their respective courts. One, commonly referred to as the “refund” or damages case, has a May 31, 2024, deadline for the filing of claims. The other, announced on March 26, 2024 known as the “In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation,” (or injunctive relief case) was intended to deal with credit card industry price-fixing and is now accepting Objections that are postmarked by April 26, 2024.

Under the proposed March 26, 2024, settlement, Visa and Mastercard would lower credit card swipe fees – which average 2.26 percent of the transaction amount – by four basis points for three years. For five years, swipe fees would not increase above rates that existed at the end of 2023, and the average rate would be at least seven basis points below the current average. In other words, the proposed settlement purports to lead to approximately $30 billion in swipe fee savings for retailers over five years—an average of $6 billion in savings per year. However, in 2023 alone, Visa and Mastercard credit card interchange fees totaled $100 billion. After five years, all fees could be increased to more than make up for any temporary reductions. Unfortunately, the proposed settlement’s changes are meager, temporary, and will not bring real reform to address excessive credit card swipe fees.

The Energy Marketers of America (EMA) urges marketers to object to the proposed settlement. The terms of the agreement favor Visa/Mastercard and grant only minor temporary relief to merchants. Further, the settlement terms would prevent any future retailer legal action against Visa and Mastercard. CLICK HERE for a sample Objection for your use to Object to the Settlement!

Please note: Marketers should write ‘Class Action Settlement Objection” on the envelope and mail it to:

  • United States District Court for The Eastern District Of New York
    225 Cadman Plaza
    Brooklyn, NY 11201

You must also send a copy of your Statement of Objections to both Class Counsel and Counsel for the Defendants at the following addresses:

  • Designated Class Counsel: Robert G. Eisler
    Grant & Eisenhofer P.A.
    485 Lexington Ave., 29th Floor
    New York, NY 10017
  • Designated Defendants’ Counsel: Matthew A. Eisenstein
    Arnold & Porter Kaye Scholer LLP
    601 Massachusetts Ave., NW
    Washington, DC 20001-3743