A $30 billion settlement between VISA, Mastercard and retailers may be rejected by a federal judge in Brooklyn. This would be a huge setback in a litigation that has spanned over two decades.

The judge, Margo Brodie, of the US District Court for the Eastern District hinted on June 13th that she is unlikely to approve the deal.

 Spokespeople for VISA & Mastercard said they were disappointed with the judges stance.

 The Visa and Mastercard lawsuit, which dates back to 2005,  pertains to multiple settlements involving various claims about unfair practices and fees.

  1. ATM Fee Lawsuit: Visa and Mastercard agreed to pay $197 million to settle claims that they imposed excessive ATM fees. This settlement addresses long-standing grievances about high charges for ATM transactions, and affected users may be eligible for refunds from these fees​ (Fintech Futures)​​ (Visa Investor Relations)​.
  2. Interchange Fee Settlement: In a landmark agreement, Visa has settled a case with U.S. merchants, agreeing to reduce credit interchange rates and guarantee no increases for at least five years. This settlement, which came after nearly 20 years of litigation, aims to provide small businesses with more cost certainty and flexibility in how they manage payment acceptance. The agreement still awaits court approval​ (Visa Investor Relations)​.
  3. Swipe Fee Settlement: Visa and Mastercard are also part of a $5.6 billion settlement with retailers over swipe fees. Despite objections from some gas station operators, a judge ruled that payments to class members should proceed without delay. This settlement is significant as it prevents retailers who did not opt out from bringing future claims against Visa and Mastercard for a specified period​ (Top Class Actions)​​ (Top Class Actions)​.

These settlements collectively address various complaints about fees and provide financial restitution and operational changes to benefit consumers and businesses. If you are affected, it’s advisable to check specific eligibility criteria and procedures for claiming any refunds or benefits from these settlements.

 Judge Margo K. Brodie in Brooklyn has expressed concerns about approving the latest settlement between Visa, Mastercard, and merchants due to potential issues with the claims and distribution process.

The main reasons for her hesitation are centered around ensuring that the settlement is fair and that all eligible merchants, particularly smaller businesses, are adequately informed and able to claim their share of the settlement.

 Given these complexities and the wide range of merchants involved, the judge is taking a cautious approach to ensure that the settlement process is thorough and just​.

For more information you can visit the official website here https://www.paymentcardsettlement.com/en