Visa and Mastercard have agreed to pay $167.5 million to settle a long-running US antitrust class action relating to ATM access fees, bringing to a close litigation that has been active for more than a decade.
The case, Burke v Visa and Mastercard, was filed on behalf of consumers who used independent, non-bank ATMs, alleging that the card networks imposed rules that restricted competition and led to higher ATM surcharges.
Under the proposed settlement published on December 18, Visa and Mastercard will jointly fund a cash settlement with no admission of liability by either company.
Allegations focused on ATM surcharge rules
The lawsuit centred on the card networks’ non-discrimination rules, which govern how ATM operators apply surcharges to cardholders. Plaintiffs alleged that these rules limited price competition among independent ATM operators, resulting in higher access fees being paid by consumers.
The claims did not relate to card-present interchange fees or merchant acquiring costs, but instead focused on the economics of the US ATM network, particularly for ATMs operated outside of traditional banking institutions.
Visa and Mastercard have consistently denied the allegations, arguing that their rules were lawful and pro-competitive.
Settlement structure and claims process
The settlement fund will be distributed to eligible claimants on a pro-rata basis, determined by the number of qualifying ATM transactions conducted during the relevant class period.
After deductions for court-approved legal fees, expenses, and service awards, remaining funds will be allocated based on transaction data submitted through the claims process.
A formal claims administration programme will be launched following preliminary court approval, with notices issued primarily through digital channels and a dedicated settlement website.
According to the proposed timetable, class members will have 180 days from the start of the notice period to submit a claim.
Legal fees and next steps
Class counsel is expected to seek up to 30% of the settlement fund in attorneys’ fees, alongside reimbursement of litigation costs and service awards for named plaintiffs. These amounts remain subject to court approval.
The settlement still requires approval by the US District Court. A preliminary approval hearing will determine whether the agreement can proceed to the claims and notice phase.
