Visa, Mastercard Agree to $167.5 Million ATM Fee Settlement.
Visa and Mastercard have agreed to pay $167.5 million to settle a US lawsuit over ATM withdrawal fees. The case accused the companies of keeping fees high at independent, non bank ATMs, though both deny any wrongdoing.
If approved by a federal court in Washington, the settlement will compensate millions of ATM users who paid unreimbursed fees on eligible transactions dating back to October 2007. Visa will pay about $88.8 million, while Mastercard will contribute around $78.7 million.
The lawsuit was filed in 2011 and is one of several related cases. A separate case brought by independent ATM operators is still pending. Visa also faces other antitrust challenges in the US, which it denies.
Many ATM users were not reimbursed when withdrawing cash from independent, non bank ATMs, often paying higher access fees than at bank owned machines.
The lawsuit claimed that Visa and Mastercard enforced network rules that limited price competition, preventing independent ATM operators from offering lower fees. According to the plaintiffs, this practice helped keep ATM charges artificially high for years.
Visa and Mastercard deny any wrongdoing and say their rules were lawful. However, they agreed to an out of court settlement, a move that companies often take to avoid lengthy trials, rising legal costs and the uncertainty of a court ruling even when they maintain their innocence.
Importantly, the settlement is not a legal finding of monopoly or guilt. No court has ruled that Visa or Mastercard violated antitrust laws in this case. The agreement simply closes one chapter of a long running legal dispute while a separate lawsuit by ATM owners remains ongoing.
Still, the case has raised serious questions about market power, fee transparency, and competition in the payments ecosystem. Regulators are watching closely, especially as Visa faces other antitrust challenges in the United States.
– Opinion | Daily ScrollDown