American Express agreed to pay $17.5 million to settle antitrust allegations that it used “anti-steering rules” to prevent merchants from encouraging customers to use lower-cost payment methods. If you’re an Illinois resident who used a Visa, Mastercard, or Discover card without an annual fee at major retailers between January 2016 and June 2022, you may be eligible to file a claim and recover a portion of the settlement fund. The case arose from a jury verdict in August 2025 that found Amex liable for unfair competition under Illinois law, with a $12.5 million judgment that was subsequently converted into this settlement agreement.
This settlement addresses a fundamental tension in the payment card industry: whether card networks can legally prevent merchants from steering customers toward cheaper payment options. For example, if a gas station wanted to offer a discount to customers paying with cash or debit cards instead of American Express, Amex’s rules historically prohibited that practice. The settlement compensates Illinois consumers who shopped at qualifying retailers during this period.
Table of Contents
- How Did American Express’s Anti-Steering Rules Affect Consumers and Merchants?
- Who Qualifies for the Settlement, and What Are the Specific Eligibility Requirements?
- What Is the Settlement Amount, and How Will It Be Distributed?
- How Do I File a Claim, and What Documents Do I Need?
- What Are the Key Limitations and Risks of This Settlement?
- How Much Will Attorneys and Administrators Take from the Settlement Fund?
- What’s the Timeline for This Settlement, and What Happens Next?
How Did American Express’s Anti-Steering Rules Affect Consumers and Merchants?
american Express enforced contractual restrictions that prevented merchants from encouraging customers to use alternative payment methods. These “anti-steering rules” applied to retailers like Walmart, Target, Home Depot, CVS, Walgreens, Kroger, and Best Buy—stores where most Illinois consumers regularly shopped. When a merchant couldn’t incentivize cheaper payment options, customers often defaulted to American Express cards, which typically charge higher processing fees than Visa or Mastercard. over the years, these higher fees accumulated across millions of transactions, increasing the effective cost of American Express purchases.
The impact was particularly significant for consumers who used American Express frequently without realizing the price differential. A consumer might have paid an extra $0.50 to $1.00 per transaction compared to competitors’ cards at these major retailers. Multiplied across dozens or hundreds of shopping trips over six years, these incremental costs added up. Merchants wanted to offer discounts to lower-cost payment methods, but Amex’s contracts blocked them from doing so, shifting costs to cardholders.
Who Qualifies for the Settlement, and What Are the Specific Eligibility Requirements?
To file a claim in this settlement, you must meet several strict criteria. First, you must have been an Illinois resident with a billing address in the state during at least part of the settlement period from January 29, 2016, through June 1, 2022. Second, you must have used a non-rewards Visa, Mastercard, or Discover credit card with no annual fee—American Express cards are excluded from this settlement. Third, you must have made purchases at one or more of the 38 qualifying merchants that are part of the settlement agreement.
The qualifying merchant list includes major national retailers like Walmart, Target, Home Depot, CVS Pharmacy, Walgreens, Kroger, Best Buy, Amazon, Costco, and others. However, specialty retailers, restaurants, and many smaller businesses are not included. This narrow merchant list is a significant limitation: if you primarily shopped at stores outside this group, you likely won’t qualify. Consumers should carefully review the complete list before filing a claim to ensure they actually purchased at the specified retailers during the eligible period.
What Is the Settlement Amount, and How Will It Be Distributed?
The total settlement fund is $17.5 million, but the actual amount available to eligible claimants is substantially less because the court is considering attorney fees and administrative costs. The plaintiff’s attorneys have requested up to 33% of the settlement fund—approximately $5.775 million—plus up to $8 million in additional expense reimbursement for litigation costs. If approved as requested, these fees would leave approximately $3.725 million for actual consumer payouts. The court will evaluate whether these fees are reasonable at the final approval hearing scheduled for June 17, 2026.
The specific amount each claimant receives depends on the total number of claims filed and how much of the settlement fund remains after attorney fees and administrative costs are deducted. Settlements with lower overall participation sometimes result in larger per-claim payouts, while heavily claimed settlements distribute the available funds across more people. Eligible consumers should file claims before the May 19, 2026, deadline to ensure their portion is calculated. Importantly, the settlement does not provide a fixed payment per transaction or per merchant visit—instead, each qualifying claimant receives an equal share of the remaining fund after all deductions.
How Do I File a Claim, and What Documents Do I Need?
The claims process for this settlement is relatively straightforward, though you will need to provide proof that you’re eligible. To file a claim, you must submit a claim form (available through AmexAntitrust.com or through the settlement administrator) that includes your personal information, proof of your Illinois residency during the eligible period, and evidence that you held a qualifying Visa, Mastercard, or Discover non-rewards card without an annual fee. The May 19, 2026, claims deadline is firm; claims submitted after this date will be rejected regardless of eligibility.
You’ll typically need documentation such as credit card statements showing purchases at qualifying merchants during the January 2016 to June 2022 timeframe, proof of Illinois address during that period (utility bills, lease agreements, or tax returns work well), and proof of your card type and annual fee status. If you no longer have old credit card statements, some banks and card issuers maintain electronic archives that you can download. The settlement administrator will verify your claim information against records from the qualifying merchants, so your provided details must be accurate. Note that this settlement operates on a “claims-made” basis, meaning you must actively file to receive payment—eligible consumers won’t automatically receive money unless they complete the claims process.
What Are the Key Limitations and Risks of This Settlement?
One major limitation is that the settlement only covers a specific six-year window and specific merchants. If you used a qualifying card at non-participating retailers, those purchases are excluded, even if American Express’s anti-steering rules applied there. Many restaurants, gas stations, boutique retailers, and regional chains fall outside the qualifying merchant list. Additionally, if you primarily used American Express cards instead of Visa, Mastercard, or Discover, you’re ineligible for this settlement altogether, even though Amex’s rules may have indirectly affected the overall market pricing you encountered.
Another significant risk is that settlement payouts are typically modest because the remaining fund must be divided among all eligible claimants. With an estimated 3.725 million remaining after attorney fees and costs, if even 100,000 claims are filed, each claimant might receive only $37. If claims exceed expectations, per-claim payouts could be even smaller. This is not a get-rich-quick opportunity; it’s a mechanism for recovering partial restitution for alleged antitrust violations. Also, by filing a claim, you may be agreeing to release future claims against Amex related to anti-steering practices, which limits your legal options going forward.
How Much Will Attorneys and Administrators Take from the Settlement Fund?
The plaintiff’s legal team is seeking attorney fees equal to 33% of the $17.5 million settlement—roughly $5.775 million—plus an additional $8 million to cover litigation expenses. While these fees may be approved by the court at the final hearing on June 17, 2026, they represent a substantial portion of the settlement. This means only about $3.725 million (roughly 21% of the original settlement amount) would go to eligible consumers, while legal representation and administration consume the remainder. These ratios are not unusual in class action settlements, but they illustrate why per-claim payouts are often modest.
Court-appointed settlement administrators also deduct fees for managing claims processing, verification, and distribution. These administrative costs—separate from attorney fees—further reduce the amount available to claimants. By the time all parties are paid, the consumer-facing portion of a settlement can sometimes drop to less than 25% of the headline number. This is why savvy settlement claimants review the detailed settlement agreement to understand the fee structure before filing, ensuring they understand realistic payout expectations rather than hoping for a large check.
What’s the Timeline for This Settlement, and What Happens Next?
The settlement has several key dates that claimants need to track. The objection deadline is April 29, 2026, meaning consumers who disagree with the settlement terms have until that date to file formal objections with the court. The claims filing deadline is May 19, 2026—this is the hard cutoff for submitting claim forms; late submissions will be rejected. The final approval hearing is scheduled for June 17, 2026, when the court will review the settlement, attorney fee request, and any objections before granting final approval.
After final approval, the settlement administrator begins processing claims and distributing payments. This process typically takes several months, with actual checks or electronic transfers sent to claimants sometime in the latter half of 2026 or early 2027. This settlement reflects a broader pattern in antitrust litigation: significant awards by courts, converted into smaller per-consumer payments after legal and administrative costs. While the $17.5 million headline figure may sound substantial, the practical reality is that each eligible Illinois consumer will receive a modest recovery. Claimants should monitor the settlement website for status updates and payment timelines.
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