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Business Insights

Compensation for Visa – Mastercard Payments

Harold Lichtenstein
5 Minutes to read

If your business accepted Visa and/or Mastercard debit or credit card payments between December 31, 2003 and January 26, 2019, you are entitled to compensation.

Why am I entitled to compensation?

As part of a recent settlement resulting from a class action lawsuit, business owners are entitled to compensation for fees that Visa and Mastercard allegedly improperly charged during the stated period.

As part of the settlement, Visa and Mastercard will provide $5.5 billion to business owners that accepted payment from either or both companies between 12/31/03 and 1/26/19.

What types of fees did Visa and Mastercard charge?

The lawsuit principally focused on interchange fees charged to merchants that accepted Visa and Mastercard payments between 12/31/03 and 1/26/19, and a corresponding compensation you may be entitled to.

An interchange fee is the amount charged to a business for using the payment card for a transaction. Typically, interchange fees are 1% to 2% of the purchase made with the payment card. 

Do I need to attend court to receive my claim?

No, the Court did not decide whether any laws were violated. Instead, Visa and Mastercard agreed to settle the case instead of taking the case to a Court trial process. This settlement and decision for compensation was the result of extensive negotiations after 13 years of litigation.

How much money am I entitled to receive?

Under the settlement, Visa and Mastercard agreed to compensate $5.5 billion to businesses that incurred interchange fees during the stated period. The amount you receive will depend on the value of charges over the stated period as well as the total dollar value of all valid claims filed. 

When will I receive payment?

Payments will not be made until after the claim deadline on May 31, 2024. Since the payments are calculated based on the total filed claims, the amount each business claims pro rata cannot be calculated until all claims are filed and reviewed.

How do I file my claim?

You must submit your claim by May 31, 2024 to be eligible for compensation. 

You can submit the Claim Form online or our team at NEWITY can assist you with calculating your claim amount and submitting your claim form for a 12% fee.

Why work with NEWITY to file?

At NEWITY, we’re dedicated to helping small businesses access capital. Our team is staffed with CPAs that can help determine your claim amount, verify the amount using past tax returns, complete your claim form, file it on your behalf, and track your claim payment. 

Getting started is easy. Our intake form takes less than a minute to complete. Once we have your information, a member of the NEWITY team will contact you with next steps.

What should I do next?

To learn more about the settlement and start your claim, complete our simple intake form and a member of our team will contact you regarding next steps. Or, feel free to contact us by phone at 773-839-8089.

To qualify for an SBA 7(a) small business loan, your business must be:

  1. U.S.-based and operated
  2. Owner supported / owner funded
  3. Eligible per the SBA’s requirements

Your loan amount will determined by the business’ average annual revenue, FICO score, and years in business