SMBs Can Claim In Visa Class Action Settlement

Small to medium businesses (SMBs) that have been accepting Mastercard and/or Visa credit cards as payment for the last two decades could receive a portion of a recent multimillion-dollar class action settlement with Visa and Mastercard. The settlement is another small step toward ensuring fairness for many small businesses that have been dealing with expensive credit card processing fees, says the Canadian Federation of Independent Business (CFIB). The portion of the settlement a business can receive depends on its size and average annual revenue. Small merchants with an annual revenue of less than $5 million may claim $30 per year they incurred merchant discount fees between 2001 and 2021, for a maximum total of $600. Businesses have until September 30 to register. Under the settlement, Mastercard and Visa will also modify their surcharging rules, allowing small businesses to choose to pass on their merchant credit card fees to customers. This change is expected to come in effect in October 2022.