Top Class Actions  |  September 23, 2022

Category: Closed Settlements

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This settlement is closed!

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Visas and Mastercards fanned out on a black background - interchange fees settlement
(Photo Credit: Theethawat Bootmata/Shutterstock)

EDITOR’S NOTE: This content has been sponsored and edited for clarity in collaboration with the sponsor.

Several banks and financial institutions have agreed to a $188 million CAD class action settlement resolving claims they charged high interchange fees and put in place rules that restricted merchants’ ability to surcharge or refuse higher-cost Visa and Mastercard credit cards.

The class is made up of anyone in Canada who accepted payments by Visa or Mastercard credit cards between March 23, 2001, and Sept. 2, 2021.

While they have not admitted any wrongdoing, a number of major financial institutions have agreed to settle in this case (amounts provided in Canadian dollars):

  • Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and Toronto-Dominion Bank will pay $120 million
  • Mastercard International Inc. will pay $19.5 million
  • Visa Canada Corp. will pay $19.5 million
  • Féderation des caisses Desjardins du Québec will pay $9.9 million
  • Bank of America Corp. will pay $7.75 million
  • National Bank of Canada Inc. will pay $6 million
  • Capital One Bank (Canada Branch) will pay $4.25 million
  • Citigroup Inc. will pay $1.63 million

Merchant class members will be eligible to claim a share of the $131 million net settlement fund, the money remaining after costs such as attorneys’ fees and other expenses are paid.

Small Merchant Fund

Small merchants — defined in the settlement agreement as those that collected less than $5 million in average yearly revenue during the class period — will be allocated 40% of the net settlement fund.

Small merchants may file their claims without supporting documentation and are eligible to receive $30 for each year they accepted Visa or Mastercard credit cards during the class period.

Medium Merchant Fund

Medium merchants — those that collected $5 million to $20 million in average yearly revenue during the class period — will be allocated 10% of the net settlement fund.

Medium merchants may file claims that require proof of at least one agreement they entered into with an acquirer or payment processor, and are eligible to receive $250 for each year they accepted Visa or Mastercard credit cards during the class period.

Large Merchant Fund

Large merchants — those who collect more than $20 million in average yearly revenue during the class period – will be allocated 50% of the net settlement fund.

Large merchants may file either a simplified claim, for which they would be eligible to receive $250 per year they accepted Visa or Mastercard credit cards during the class period, or a claim with documentation showing credit card sales volume or payment of interchange fees.

If they choose to file a documented claim, they will be eligible for a payment to be calculated based on the actual Interchange Fees paid, or by applying an average interchange rate of 1.5% to their credit card sales volume.

Funds remaining in the Large Merchant Fund after simplified claims are paid will be distributed to eligible Large Merchants on a proportionate basis.

The deadline for class members to object to or opt out of the interchange fees settlement has passed.

A hearing to approve the settlement was held Dec. 6, 2021.

The claim deadline is Sept. 30, 2022, for undocumented claims and Dec. 30, 2022, for documented claims.

Who’s Eligible

The class is made up of anyone in Canada who accepted Visa or Mastercard credit cards as payment for goods or services between March 23, 2001, and Sept. 2, 2021, and incurred merchant discount fees, including interchange fees.

Potential Award

Varies

Payment amounts will vary depending on the merchant’s size and the documentation provided.

Proof of Purchase

Proof of purchase is needed for medium and large merchant claims.

Proof may include: merchant statements, financial statements, historical accounting records or other records that show the Interchange Fees they paid or their credit card sales volume, OR a declaration attesting to the Interchange Fees paid or their credit card sales volume, along with substantiating documentation that is acceptable to the Claims Administrator.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Claims Administrator’s website to ensure you meet all standards (Top Class Actions is not a Claims Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

09/30/2022 for undocumented and simplified claims

12/30/2022 for documented claims

Case Names
  • Watson v. Bank of America Corp., et al., SCBC No. VLC-S-S-112003 (Vancouver)
  • Bancroft-Snell, et al. v. Visa Canada Corp., et al., OSCJ No. CV-11-426591CP (Toronto)
  • 9085-4886 Quebec Inc. v. Visa Canada Corp. et al., Superior Court of Quebec No. 500-06-000549-101 (Montreal)
  • Macaronies Hair Club and Laser Center Inc., operating as Fuze Salon v. BofA Canada Bank, et al., Alberta QB File No. 1203-18531 (Edmonton)
  • Hello Baby Equipment Inc. v. BofA Canada Bank and others, SK QB No. 133 of 2013 (Regina)
Final Hearing

12/06/2021

Settlement Website
Claims Administrator

Credit Card Class Actions Claims Administrator
P.O. Box 507
STN B
Ottawa ON K1P 5P6
info@CreditCardSettlements.ca
1-877-283-6548
1-877-627-7027 (TTY)
1-866-262-0816 (Fax)

Class Counsel

For non-Quebec residents:
Luciana Brasil
BRANCH MACMASTER LLP

Sharon Wong
CAMP FIORANTE MATHEWS MOGERMAN

For Quebec Residents:
Jeff Orenstein
CONSUMER LAW GROUP

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7 thoughts onVisa, Mastercard interchange fees $188M class action settlement

  1. yolanda dowling. says:

    please add me

  2. Vernita Orr says:

    Please add me

  3. Johanne Grenier says:

    J’aimerais savoir comment je fais pour m’inscrire svp j’ai les deux cartes aussi

    1. Nancy c Johnson says:

      Ii need a lawyer for this case

  4. Todd says:

    Interested in the small claims. I had a few of these credit cards before I went bankrupt in 2004ish. Just recently did a consumer proposal last year not sure if I qualify. Credit cards are evil.

  5. Christopher Simmonds says:

    Add me plz

    1. Brenda harvey says:

      Add me please

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.