For nearly two decades, U.S. merchants have been locked in a legal battle against Visa, Mastercard, and major banks over allegedly excessive swipe fees. If your business accepted Visa or Mastercard credit or debit cards at any point between January 1, 2004, and January 25, 2019, you are part of this historic class action.
With $5.54 billion on the line, the claims process has transitioned into the payout phase. Below is a detailed breakdown of where the settlement stands today, who qualifies, how many merchants have been paid, and what to do if you are still waiting.
Quick Facts and Status at a Glance
| Metric or Event | Detail |
|---|---|
| Total Settlement Fund | $5.54 Billion |
| Class Period | January 1, 2004 – January 25, 2019 |
| Claim Filing Deadline | February 4, 2025 (Passed) |
| Total Registered Merchants | 2.12 Million Tax ID Numbers (TINs) |
| Total Claims Filed | 1.47 Million |
| Paid in Initial Distribution | Approximately 599,000 claims, totaling $418.9 million |
| Remaining Fund Balance | $5.17 Billion as of June 30, 2026 |
| Next Distribution Phase | Scheduled for September 2026 |
What Is the Lawsuit About?
The lawsuit, officially known as the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, argues that Visa and Mastercard, along with major card-issuing banks, conspired to set excessive interchange fees, often called swipe fees, paid by merchants on every transaction.
The lawsuit also challenged network rules that prevented merchants from directing customers to lower-cost payment methods or charging surcharges to help cover processing fees.
Qualification Standards: Who Is Eligible?
- Accepted covered cards: You accepted Visa-branded or Mastercard-branded credit or debit cards in the United States.
- The qualifying period: Your card acceptance occurred at any time between January 1, 2004, and January 25, 2019.
- No exclusion: You did not explicitly opt out of the monetary Rule 23(b)(3) Settlement Class before the applicable deadline.
- Business status: You do not need to remain in business today to receive a payout. Closed stores, sold locations, and restructured entities that operated during the qualifying period may still be eligible.
Note on value: The amount each merchant receives varies based on historical processing volume and other claim factors.
How Many Merchants Have Been Paid?
- First wave paid: Approximately 599,000 claims were paid in the initial distribution, totaling roughly $418.9 million.
- Fund balance: The settlement fund held approximately $5.17 billion as of June 30, 2026.
- Next payout wave: A second initial distribution was approved, with payments expected to begin in September 2026.
Why Are Some Merchants Still Waiting?
Claims Awaiting Special Master Review
Some merchant claims remain under review because of documentation questions, historical processor data mismatches, or other disputes.
Tax Identification Number Conflicts
A conflict can arise when more than one entity or registrant claims authority over funds connected to the same business tax identification number.
Payment Elections Not Yet Selected
Some approved claimants may still need to choose how they want to receive payment. Claimants should review official communications and use the court-approved merchant portal.
2026 Rule Changes and Equitable Relief
A separate part of the litigation concerns forward-looking credit-card acceptance and fee rules. Proposed changes have included additional surcharging flexibility, more acceptance choices, and limits intended to create greater rate stability.
Business owners should follow the final court orders and official settlement communications before changing payment practices.
Protecting Your Business from Settlement Scams
Business owners should be cautious of third-party recovery companies demanding large fees or a percentage of settlement proceeds. The court-appointed administrator provides official claim information and support through the settlement website.
What Business Owners Should Do Now
- Confirm that the claim was filed before the deadline.
- Review email and spam folders for official notices.
- Verify payment election details through the official settlement portal.
- Respond promptly to requests for supporting documentation.
- Avoid sharing sensitive information with unverified third parties.
Eric Kuvykin
Publisher and editorial director covering payments, fintech, merchant services, banking, AI, technology and operating strategy for small and medium-sized businesses.
