Summary
Visa Inc. has entered into an Amended Settlement Agreement to resolve claims in the In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation. This agreement supersedes a 2012 settlement and includes an additional $900 million payment from all defendants, with Visa's share being $600 million. This amount will be funded from a previously established escrow account under Visa's Retrospective Responsibility Plan. While the agreement provides a release from participating class members for past conduct, it notably excludes claims related to injunctive relief. The settlement also includes a provision for potential refunds to defendants, including up to $467 million to Visa, if a significant percentage of class members opt out. However, a high opt-out rate (over 25% by payment volume) could allow defendants to terminate the agreement. The settlement is pending court approval, and its finalization is not guaranteed.
Key Highlights
- 1Visa Inc. has finalized an Amended Settlement Agreement to resolve antitrust litigation concerning interchange fees and merchant discounts.
- 2An additional $900 million settlement payment is required from all defendants, with Visa contributing $600 million of this amount.
- 3Visa's $600 million contribution will be funded from its existing Retrospective Responsibility Plan escrow account.
- 4The agreement releases defendants from liability for alleged conduct up to five years after the settlement becomes final, but excludes injunctive relief claims.
- 5Up to $467 million of Visa's payment could be returned if more than 15% of class members (by payment volume) opt out.
- 6If more than 25% of class members opt out by payment volume, the defendants may terminate the agreement.
- 7The Amended Settlement Agreement is subject to court approval.