The class action lawsuit over interchange fees charged to businesses over the past 20 years has recently been settled with major credit card and financial institutions. As a result, merchants can apply to receive a settlement payment to compensate them for some of those fees.
If you accepted VISA and Mastercard credit cards between March 23, 2001, and September 2, 2021, you may be eligible to receive money from the class actions settlements.
The claim deadline for all claim types (Documented, Simplified, or Undocumented claims) has been extended to Friday, December 30, 2022.
Click on one of the topics below to jump to the corresponding section and learn more:
- What is This Class Action About?
- Eligibility
- How to Apply
- What Documentation is Needed?
- How Will the Settlement Funds be Distributed?
Visit the Canadian Credit Card Class Action website for full details.
What is This Class Action About?
Class actions were started in Canada claiming certain banks and Visa and Mastercard (the “Defendants”) conspired to set higher interchange fees and to impose rules restricting merchants’ ability to surcharge or refuse higher-cost Visa and Mastercard credit cards.
“Interchange Fees” are fees paid by merchants and collected by banks for transactions involving Visa and/or Mastercard credit cards in Canada.
Settlements totalling $188 CAD million were reached with Capital One, Citigroup, Bank of America, Desjardins, National Bank, Visa, Mastercard, CIBC, Royal Bank, Bank of Montreal, TD Bank, and Bank of Nova Scotia. Additionally, Visa and Mastercard have agreed to modify their no-surcharge rules to allow merchants to surcharge up to a cap, and to ensure this ability to surcharge remains in effect for a minimum of five years.
The settlements have received court approval, and there is a total of $131 CAD million in compensation available for distribution to class members after court-approved deductions (the “Net Settlement Amount”). The Defendants do not admit any wrongdoing or liability. The settlements resolve the class actions.
Eligibility
Settlement Class Members can receive payments under this class action.
You are a Settlement Class Member if you accept or accepted Visa credit cards and/or Mastercard credit cards as payment for goods or services and incurred merchant discount fees, including interchange fees, in Canada between March 23, 2001, and September 2, 2021.
In order to participate in the Settlement, a Class Member must submit a claim (Documented, Simplified, or Undocumented) no later than Friday, December 30, 2022.
How to Apply
To be eligible to receive part of the Settlement Fund, Settlement Class Members must submit a duly completed claim form online, by email, or fax, along with all required supporting documentation (if required) no later than Friday, December 30, 2022.
Claim forms sent by mail, must be postmarked no later than Friday, December 30, 2022.
Click here to submit a claim online.
What Documentation is Needed?
The documentation required varies based on the type of claim being submitted.
Undocumented Claim
No documentation is required
Simplified Claim
Evidence of at least one (1) agreement entered with an acquirer (also known as a payment processor).
This may include the Class Member’s original agreement with the acquirer, a merchant statement from an acquirer evidencing fees paid pursuant to an agreement, or other documentary evidence showing that the Class Member paid interchange fees to an acquirer during the class period.
Documented Claim
Records identifying the total Credit Card Sales Volume during Class Period (merchant statements, financial statements or historical accounting records that identify Credit Card Sales Volume but does not include methods of payment other than by Credit Cards such as cash or debit), OR
A declaration attesting to the Credit Card Sales Volume, the actual amount of Interchange Fees paid during the Class Period, and/or the applicable interchange rates, together with substantiating documentation.
Special rules apply to the small number of Large Merchants who issued credit cards or co-branded credit cards or received a discounted interchange rate.
Large merchants who issued their own credit cards must provide documentary proof of the actual amount of interchange fees that they paid and received.
Large merchants who issued co-branded credit cards and/or received a discounted interchange rate must submit proof of the actual rate of interchange that they paid. They must also submit enough information that allows for the actual amount of interchange fees they paid to be calculated.
How Will the Settlement Funds be Distributed?
The Net Settlement Amount will be divided into three (3) funds. Settlement Class Members will be paid from the fund that corresponds to their average yearly revenue:
- Small Merchant Fund
- Annual Average Revenue — Collected less than $5 million in average yearly revenue over the Class Period
- Claim Options — Can file an Undocumented claim
- Undocumented claims that do not require any supporting documents)
- Per Year Claim Amount — Can receive $30 for each year they accepted Mastercard or Visa credit cards during the 2001 to 2021 period
- Medium Merchant Fund
- Annual Average Revenue — Collected between $5 million and $20 million in average yearly revenue over the Class Period
- Claim Options — Can file a Simplified claim
- Simplified claims require proof of at least one agreement entered with a payment processor
- Per Year Claim Amount — Can receive $250 for each year they accepted Mastercard or Visa credit cards during the 2001 to 2021 period
- Large Merchant Fund
- Annual Average Revenue — Collected more than $20 million in average yearly revenue over the Class Period
- Claim Options — Can file a Documented or Simplified claim
- Documented claims require records identifying the total Credit Card Sales Volume during the Class Period or a declaration attesting to the Credit Card Sales Volume, the actual amount of Interchange Fees paid during the Class Period, and/or the applicable interchange rates, together with substantiating documentation.
- Simplified claims require proof of at least one agreement entered with a payment processor
- Per Year Claim Amount — Varies depending on the claim option submitted:
- Document claims can result in larger settlements based on the proportional share of the Large Merchant fund (to be determined once all claims are submitted)
- Simplified claims will receive $250 for each year they accepted Mastercard or Visa credit cards during the 2001 to 2021 period
The courts approved a distribution plan for distributing the Net Settlement Amount. A copy of the distribution plan can be found on the Canadian Credit Class Actions website.