Visa and MasterCard have been accused of maintaining high fees for independent access ATMs, and the settlement must now be approved by a judge in Washington, writes the Guardian. Under the agreement, the money would be paid to millions of cardholders who were charged fees for cash withdrawals at independent ATMs that they do not own banks.
Visa will pay about $88,8 million into the settlement fund, and MasterCard about $78,7 million. The money will be distributed to those who have made those transactions since October 2007, reports Index. In the court filing, the plaintiffs' lawyers called the settlement "an excellent result, considering the risks of further prosecution", and announced that they will ask the court for up to 30 percent of the fund, which is more than 50 million dollars, to cover court costs.
The lawsuit was filed back in 2011, when consumers challenged Visa and MasterCard rules that prevented independent ATM operators from offering lower prices for their services. Both companies have denied any wrongdoing. This is one of three related cases in federal court in Washington. Last year, Visa and MasterCard agreed to pay $197,5 million to settle similar claims by another group of customers who claimed they were overcharged at ATMs operated by the banks. Several banks agreed to pay $66 million in 2021 as part of settlements in the same dispute.
A third lawsuit, filed by independent ATM owners and operators, is still pending in the same court, and Visa is also facing other antitrust lawsuits, including one from the Justice Department, which accuses the company of illegally monopolizing the US debit card market.
Source: FoNet
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