Discover Card Misclassified Transactions Class Action Settlement — Claim Deadline May 18, 2026

Discover card misclassified transactions class action settlement
Photo by www.kaboompics.com on Pexels

Discover Card Misclassified Transactions Settlement

Discover Financial Services has agreed to a $1.225 billion class action settlement — one of the largest merchant fee settlements in history — to resolve claims that Discover misclassified over 5 million consumer credit cards as commercial credit cards, causing merchants to pay higher interchange rates. Merchants who accepted Discover cards between 2007 and 2023 may be eligible. File your claim by May 18, 2026.

What Is This Case About?

Beginning in 2007, Discover Financial Services, DFS Services LLC, and Discover Bank misclassified over 5 million consumer credit cards as commercial credit cards. This caused merchants to pay higher “commercial” interchange rates rather than lower consumer rates — an overcharge of roughly 1% per affected transaction. Regulators estimated merchants were overcharged more than $1 billion, and the FDIC separately imposed a $150 million civil money penalty on Discover.

Who Is Eligible?

All merchants, merchant acquirers, and payment intermediaries that accepted or processed Discover credit card transactions classified as commercial (but actually consumer) between January 1, 2007 and December 31, 2023. This includes businesses using PayPal, Stripe, Square, Shopify, or other payment intermediaries. Every approved claimant is guaranteed at least $10.

How Much Can You Receive?

The total settlement fund is $1.225 billion, with a minimum of $540 million guaranteed for distribution to the class. Cash payments are calculated proportionally based on your transaction volume and the estimated interchange fee overcharge per merchant identifier (MID). Larger-volume merchants will receive larger payments.

How to File Before the Deadline

Submit your claim through the official Discover Merchant Settlement website. You will need your business name, tax ID, contact information, and proof of Discover card processing during the qualifying period.

View this settlement on OpenClassActions.com for additional details and updates.

  • Claim Deadline: May 18, 2026
  • Settlement Amount: $1.225 billion
  • Minimum Guaranteed: $540 million for class distribution
  • Case Type: Merchant fee overcharges — credit card misclassification

OpenClassActions.org is not affiliated with Discover Financial Services or the settlement administrator. This page is for informational purposes only and does not constitute legal advice.