The deadline is approaching to request a piece of a multibillion-dollar deal.
Visa and Mastercard users may be eligible for a one-time payment due to allegations that the organizations violated antitrust laws.
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These laws exist to ensure that consumers and businesses have the right to a competitive industry, rather than the dominance of one or two large companies.
An antitrust lawsuit filed by U.S. merchants alleged that Visa and Mastercard set excessive swipe fees, harming the companies.
This is what merchants charge for accepting credit or debit card payments from consumers.
Businesses typically pay 2% of a transaction in swipe fees, but premium rewards cards can charge as much as 4%, according to industry estimates cited by CNN.
The suit alleged that card companies and the banks that issue them worked together to inflate swipe rates for businesses and prevented merchants from referring consumers to cheaper payment methods.
While denying any wrongdoing, the credit card networks agreed to settle the claims by paying at least $5.6 billion.
The agreement includes any U.S. persons, companies or entities that accepted Visa and/or Mastercard credit or debit cards between January 1, 2004 and January 25, 2019.
Even businesses that have closed, gone bankrupt or changed ownership can file a complaint.
In addition to paying, both chains will have to make changes, such as reducing swipe rates by at least 0.04% for at least three years.
Card companies have agreed to keep swipe rates at the same rate from December 31, 2023 through 2028.
Visa and Mastercard will also remove anti-competitive restrictions that block transactions from cheaper card options recommended to customers.
In May, a New York court approved an extension of the deadline for those to claim the settlement.
The 90-day extension set the new deadline for the largest antitrust class action settlement in the country’s history to August 30, 2024.
“This extension helps all eligible businesses, and in particular small businesses, which often have limited resources, by giving them more time to act,” said a statement. Press release over the declared extension.
What is a class action settlement?
Class action lawsuits offer groups of people, or “classes,” a way to come together in court.
These lawsuits are often filed by one or a few people who allege that a company or other entity has harmed a large group of people.
When a lawsuit becomes a class action, it extends to all “class members,” or people who may have similar claims to those who filed the lawsuit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue legal action by accepting money.
These payment agreements often include statements from the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination or false advertising are some examples of what can lead to a class action lawsuit at a company’s door.
“We really hope traders take advantage of the extra time they have,” said Ryan Marth, a leading trader class advisor, for Diving into payments.
“This is real money for real companies.”
With just a few weeks left to file a claim, businesses don’t need to worry if they don’t receive their claim forms in the mail.
Those who believe they are eligible can visit the settlement complaints portal and confirm your identity using a Tax Identification Number and then follow the steps to make a claim.
More information about the agreement can be found on the website website.
The amount each company will receive from the settlement will be decided once all claims have been submitted and approved.
Meanwhile, Bank of America customers may be eligible for a $21 million settlement payment and the deadline is approaching for eligible drivers to claim a $6 million settlement.
This story originally appeared on The-sun.com read the full story
