$1,797 Direct Payment Announced for Visa and Mastercard Users: Visa and Mastercard, two companies that control a large share of the payment network across the world, have recently received a major blow from the US court. The court said in its decision that the extra charges that both the companies have been charging their consumers on ATM transactions for years are illegal. For this reason, now these companies will have to return a total of $197 million i.e. about ₹1,650 crores to their customers.
Fee charged for withdrawing cash from ATM declared illegal
According to the court’s decision, Visa and Mastercard charged their cardholders extra charges for withdrawing cash from bank ATMs in the US. This charge was imposed without any valid basis. On this basis, the court considered it illegal and ordered the companies to return this money to the consumers.
How much money will consumers get?
In this case, Mastercard will have to return $92.8 million and Visa will have to return $104.6 million. This means that eligible consumers will be given an average amount of $1,797 (about ₹1.5 lakh) directly transferred to their account. This compensation will be given to those customers who have repeatedly withdrawn cash from ATMs in the last several years and were repeatedly charged extra fees.
Which customers will get this compensation?
Not every Visa and Mastercard user will be entitled to this refund. Only customers who have paid a non-refundable surcharge while withdrawing cash from a bank-regulated ATM (such as JPMorgan Chase, Wells Fargo or Bank of America) in the US between October 1, 2007 and July 26, 2024 are eligible for this claim.
How to claim this refund?
Customers who want to receive compensation will have to visit the official website of ATM Surcharge Settlement and fill out a claim form. The form can be filled online or can be downloaded and sent to them. Consumers will have to provide their basic information and sign an affidavit acknowledging that they have indeed paid the additional fee.
Claim Form Filling Deadline and Hearing
The last date for filing the claim form was set as January 22, and the final hearing was held in the court on January 24 in which the settlement was approved. If you have not yet made a claim, it is important to apply as soon as possible, otherwise you may be deprived of this compensation.
Big action by the US government on Visa
The US Department of Justice has also alleged against Visa that the company deliberately tried to suppress competition in the debit card market. According to reports, Visa threatened merchants that they would suffer losses if they used another payment network. Not only this, attempts were also made to bribe potential competitors.
What is the way Visa and Mastercard earn money?
Visa charges fees from card issuing banks based on each transaction or total volume, while Mastercard charges a fixed percentage on global dollar volume. According to the report, Visa processes 60% of US debit transactions and earns about $7 billion annually.
Action against companies in other countries too
Not just America, complaints and lawsuits are going on against Visa and Mastercard in Europe, Australia and other countries too. Small merchants and consumers are upset with the fee policies of these companies and sometimes this extra charge becomes very heavy.
Conclusion: Victory for consumers and strictness on companies
This decision is a big victory for consumers and shows that no matter how big a company is, if it behaves unfairly with the public, it will have to answer. If you are also eligible, then fill your claim form as soon as possible, because this money is yours and you should get it.
FAQs On $1,797 Direct Payment Announced for Visa and Mastercard Users
Q. Why are Visa and Mastercard paying $197 million?
A. A U.S. court ruled they charged unlawful ATM fees to customers and must refund those amounts.
Q. Who is eligible for the refund?
A. Customers who used a Visa or Mastercard debit card at U.S. ATMs between October 1, 2007, and July 26, 2024, and paid a non-refundable surcharge.
Q. How much will eligible users receive?
A. On average, around $1,797, depending on the number of transactions and fees paid.
