If you operated a business that accepted Visa or Mastercard payments between January 2004 and January 2019, you likely qualify for a share of the $5.5 billion Visa/Mastercard merchant fee settlement. Additionally, if you accepted Discover Card payments between 2007 and 2023, a separate $1.225 billion settlement is available. These settlements address merchant interchange fees—charges imposed by card networks on businesses for processing customer payments.
Eligibility extends to nearly all US merchants, including those using platforms like Shopify, Square, Stripe, and PayPal, as well as independent businesses processing cards directly. This article explains both major Shopify-related merchant fee settlements, who qualifies, how to claim compensation, and what deadlines remain. We’ll also cover an ongoing antitrust case that may affect Shopify merchants going forward.
Table of Contents
- What Was the Visa and Mastercard Merchant Fee Settlement About?
- Who Qualifies for the Visa and Mastercard Settlement?
- Understanding the Discover Card Merchant Fee Settlement
- How Does the Settlement Claims Process Work?
- Documentation and Verification Requirements
- Claim Deadlines and Current Status
- The Sezzle Antitrust Litigation Against Shopify
What Was the Visa and Mastercard Merchant Fee Settlement About?
The Visa/Mastercard settlement resolved a long-running class action lawsuit challenging the interchange fees charged to merchants for processing credit and debit card transactions. These fees—typically 1-3% of transaction value—were set by the card networks and collected by banks issuing merchant accounts. The settlement alleged that Visa and Mastercard conspired to keep these fees artificially high and failed to disclose meaningful fee information to merchants. The $5.5 billion settlement fund represents one of the largest class action settlements in US history.
The settlement covers merchants in the United States who accepted Visa and/or Mastercard payments between January 1, 2004 and January 25, 2019. This period is crucial: merchants outside these dates are not eligible, even if they accepted cards before 2004 or after January 2019. The settlement also created different claim pathways depending on whether merchants had active, documented relationships with specific merchant acquirers or processing companies during the eligibility period. For example, a retail shop owner who processed Visa cards continuously from 2010 through 2018 would qualify, but a grocery store that only began accepting Mastercard in 2020 would not. The settlement recognizes that merchants bore the cost of inflated interchange fees through reduced profits and higher operational costs passed down through their payment processors.
Who Qualifies for the Visa and Mastercard Settlement?
Nearly all US merchants qualify for this settlement if they accepted Visa or Mastercard during the eligible period. This includes sole proprietors, partnerships, corporations, nonprofits, and government entities. Eligibility extends whether you processed cards directly through a bank, used a payment processor like Square or Stripe, operated through an e-commerce platform like Shopify, or used a point-of-sale system provided by a third party. However, certain categories are excluded. Banks and financial institutions that issued merchant accounts are excluded, as are merchants who already received compensation through earlier, separate settlements. Government agencies and certain card-issuing entities also fall outside the settlement class.
If you processed cards only outside the US, or only accepted cards from a single issuer rather than the broader Visa or Mastercard networks, your eligibility may be limited. Notably, merchants who were actively involved in the underlying litigation as named plaintiffs are excluded from receiving settlement payments. The settlement recognizes multiple claim streams. “Direct account holders” were merchants with documented accounts with specified acquiring banks. “Indirect merchants” processed cards through payment processors, resellers, or platform providers. “Residual merchants” includes everyone else who accepted cards but can’t prove an account relationship. Each group has slightly different documentation requirements, though the settlement estimates that residual claims average between $85 and $600 per claimant depending on card volume during the eligibility period.
Understanding the Discover Card Merchant Fee Settlement
A separate and more recent settlement addresses Discover Card fees. On July 30, 2025, the U.S. District court in the Northern District of Illinois granted preliminary approval to a $1.225 billion settlement with Discover Card. This settlement applies to merchants and payment intermediaries who accepted or processed Discover cards between January 1, 2007 and December 31, 2023. Discover Card’s fee structure operated similarly to Visa and Mastercard, but this settlement involved different defendants and covered a more recent eligibility period.
The settlement includes end merchants (businesses accepting Discover directly), merchant acquirers (companies that provide merchant accounts), and payment intermediaries (payment processors, platforms, and resellers helping Discover transactions). This broader scope means that a merchant using Shopify who processed Discover payments, even if they never directly contacted a Discover representative, likely qualifies. Unlike the Visa/Mastercard settlement with its February 2025 deadline, the Discover settlement’s claim deadline is May 18, 2026. This provides additional time for merchants who missed the earlier deadline to file a claim. A shop owner who processed approximately $500,000 in Discover transactions per year during the eligibility period might expect individual recovery ranging from several hundred to several thousand dollars, depending on the final settlement allocation.
How Does the Settlement Claims Process Work?
Filing a claim requires proving you accepted the relevant card network during the eligible period. For the Visa/Mastercard settlement, documentation might include credit card processing statements, bank records showing card transactions, old invoices from a payment processor, merchant account agreements, or even affidavits stating you remember processing those cards during that time. Many merchants kept minimal records from a decade or more ago, so settlements allow affidavits (sworn statements) as acceptable proof. The settlement’s claims administrator processes filings and verifies eligibility.
If the claims administrator can match your documentation to known processor records, you’re likely approved quickly. For residual claims without documentation, you may be asked to provide an affidavit describing your card acceptance practices. The process is designed to be accessible to small business owners who didn’t maintain detailed records, though some merchants experience delays if their documentation is insufficient or contradictory. A critical distinction: the Discover settlement uses a similar process but has a later deadline, so merchants who missed the Visa/Mastercard window (February 4, 2025) still have until May 18, 2026 to claim Discover Card compensation. A merchant who filed only a Visa claim by the earlier deadline should separately file for Discover if they processed Discover cards, as the two settlements are independent and both compensation amounts are available.
Documentation and Verification Requirements
For the Visa/Mastercard settlement, merchants need to document their card acceptance practices. The claims administrator accepts various forms of proof: bank statements showing card deposits, payment processor reports, credit card terminal rental agreements, invoices from acquirers, or receipts from sales that list card brands accepted. Digital records are preferred but not required; photographs of old receipts or handwritten logs can be submitted if nothing else is available. However, if your documentation is minimal or missing, don’t assume you’re ineligible. The settlement explicitly allows affidavits—signed statements where you attest to accepting the card brand during the eligible period.
These must be truthful, as false statements in legal filings carry penalties, but honest recollections are sufficient. The claims administrator reviews the overall credibility of your account and the reasonableness of your claimed card volumes. One limitation: if you claim to have processed extremely high card volumes but can only provide an affidavit with no supporting documentation, the claims administrator may discount your claim or request additional verification. Conversely, if you have consistent bank records showing modest but genuine card activity, those records will support your claim even if incomplete. Merchants should submit whatever documentation they have, no matter how imperfect, rather than abandoning a claim due to gaps in recordkeeping.
Claim Deadlines and Current Status
The Visa/Mastercard settlement’s claim deadline was February 4, 2025—which has now passed. Merchants who did not file by that date are generally excluded from this settlement. The only exception applies to merchants who can demonstrate “excusable neglect,” a legal term meaning they had a valid reason for missing the deadline despite exercising reasonable diligence. Such claims are rare and require documentation showing why you couldn’t file timely. The Discover settlement, however, remains open with a deadline of May 18, 2026.
This gives merchants another year to gather documentation and file claims for Discover Card processing fees. This represents a significant opportunity for merchants who missed the Visa/Mastercard deadline or who didn’t realize they processed Discover cards in sufficient volume to warrant claiming. Mark this date on your calendar if you accepted Discover payments, as missing a second deadline compounds the loss of potential compensation. Settlement claims are filed through the official claims administrator portal, not through the courts or Shopify directly. The administrator’s website provides forms, instructions, and contact information. Processing times vary but typically range from two to six months from submission to approval and payment.
The Sezzle Antitrust Litigation Against Shopify
While the Visa/Mastercard and Discover settlements have been resolved or are nearing final approval, a separate antitrust lawsuit is unfolding involving Shopify directly. Sezzle, a buy-now-pay-later (BNPL) provider, filed an antitrust suit against Shopify alleging that Shopify engages in anticompetitive practices by privileging its own BNPL feature while charging higher fees to merchants using competing BNPL services like Sezzle. This lawsuit is still in litigation and has not settled. Sezzle contends that Shopify’s favorable treatment of its own payment options and discriminatory pricing against third-party BNPL providers limits merchant choice and harms competition.
While the outcome remains uncertain, the case represents a different category of merchant harm—one focused on competitive practice rather than fee-fixing. This litigation may eventually result in its own settlement or judgment, but merchants cannot currently claim compensation from it. The distinction is important: the Visa/Mastercard and Discover settlements involve historical fees already paid. The Sezzle case addresses ongoing practices and competitive dynamics. Merchants should not wait for the Sezzle case to resolve before claiming available Discover settlement compensation, as the two disputes involve different defendants and different types of alleged misconduct.
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