Visa and Mastercard Agree to Pay $167.5 Million to Settle ATM Fee Antitrust Lawsuit
Visa and Mastercard have reached an agreement to settle a long-running class-action lawsuit accusing the two payment giants of conspiring to artificially inflate ATM withdrawal fees. Under the proposed settlement, the companies will jointly pay $167.5 million in compensation to consumers who were charged additional fees when withdrawing cash from independent, non-bank-owned ATMs.
The settlement, which is still subject to court approval, stipulates that Visa will contribute approximately $88.8 million, while Mastercard will pay around $78.7 million into a compensation fund. The fund is expected to benefit millions of customers who conducted eligible ATM withdrawal transactions dating back to October 2007.
The lawsuit was originally filed in 2011, when consumers accused Visa and Mastercard of imposing rules that restricted independent ATM operators from offering lower withdrawal fees. According to the plaintiffs, these rules led to higher costs for consumers using independent ATM networks. The case is one of three related antitrust lawsuits filed in the same court, with both companies continuing to deny any wrongdoing.
Last year, Visa and Mastercard also agreed to pay a combined $197.5 million to settle similar claims brought by consumers who were charged allegedly excessive fees at bank-owned ATMs. Earlier settlements in 2021 included payments totaling $66 million by several banks implicated in the same litigation.
As part of the current settlement process, plaintiffs’ attorneys are expected to seek up to 30% of the compensation fund as legal fees. Meanwhile, a third related lawsuit remains ongoing in the same court, filed by operators of independent ATM networks.
Visa continues to face broader legal pressure, including other antitrust cases related to its business practices. Among these are allegations of unlawful dominance in the U.S. debit card market, claims the company has firmly denied. Mastercard has similarly rejected accusations of anti-competitive conduct, maintaining that its rules promote transparency and consumer protection within the payments ecosystem.