Visa and Mastercard Settle Consumer ATM Fee Lawsuit for $197 Million

Visa and Mastercard have agreed to pay a whopping $197 million to settle a class action lawsuit accusing them of keeping cash access fees artificially high. The proposed accord, revealed by plaintiffs’ lawyers in a filing in Washington, D.C., federal court, involves consumers who have withdrawn cash from bank-operated ATMs since 2007.

The settlement, subject to court approval, will see Visa shelling out $104.6 million and Mastercard paying $92.8 million. The bank defendants had previously settled claims for $66 million. The defendants have all denied any wrongdoing.

The plaintiffs in the case alleged that Visa and Mastercard’s ATM network rules led to them paying higher access fees. The resolution comes after the U.S. Supreme Court rejected an appeal from Visa and Mastercard challenging a lower court judge’s ruling allowing the plaintiffs to sue as class actions.

Consumers will have the opportunity to voice any objections to the settlement terms, including the fund amount and legal fees. Visa and Mastercard are also facing legal proceedings in Brooklyn federal court over claims of overcharging merchants in debit and credit card transactions.

The proposed settlement class is estimated to have at least 175 million members. The plaintiffs’ attorneys believe that the settlement will provide immediate relief to affected consumers. Visa and Mastercard have not yet commented on the settlement.