Visa and Mastercard have reached a $167.5 million settlement to resolve a long-running class-action lawsuit. The case accused the payment networks of maintaining rules that prevented independent ATM operators from offering lower fees to consumers.
The proposed agreement, filed in a Washington D.C. federal court, awaits judicial approval. If approved, it would establish a fund to compensate millions of ATM users who incurred certain access fees at non-bank machines since October 2007. Visa is slated to contribute approximately $88.8 million to the fund, with Mastercard providing about $78.7 million.
The litigation, originally filed in 2011, centered on allegations that the companies’ policies artificially inflated the cost of cash withdrawals at independently operated ATMs. The defendants have denied any wrongdoing.
This settlement marks the latest resolution in a series of legal challenges concerning ATM fees. Last year, the two companies agreed to pay $197.5 million to settle separate claims from users of bank-operated ATMs. In 2021, several banks paid $66 million to resolve their part in the broader litigation.
Attorneys for the plaintiffs have described the settlement as a favorable outcome, noting the uncertainties of continued litigation. They intend to seek court approval for legal fees amounting to up to 30% of the settlement fund.
A related lawsuit brought by independent ATM owners and operators remains pending in the same court. Separately, Visa is confronting other antitrust challenges, including a Justice Department lawsuit alleging monopolization of the U.S. debit card market, claims which Visa disputes.