Discover Interchange Fee Class Action Settlement: $1.225B

All end merchants, merchant acquirers, and payment intermediaries involved in processing or accepting a misclassified Discover card transaction during the class period.

Documentation requirements may vary by class member and are outlined on the official settlement website.

Discover has agreed to a $1.225 billion class action settlement to resolve allegations that it misclassified certain consumer credit cards as commercial cards, leading to inflated interchange fees for merchants. The class action lawsuit claims that:

• Discover misclassified certain credit card transactions

• As a result, merchants and processors overpaid interchange fees

• Discover's actions allegedly violated federal and state laws regarding fair merchant practices

Discover denies any wrongdoing, but opted to settle to avoid further litigation.

What Class Members Can Receive

Class members who submit a valid claim form are eligible to receive a cash payment based on how much they overpaid in interchange fees. Key terms include:

• Minimum guaranteed payment: $10

• If total base payments exceed $50 million, payments will be reduced pro rata

• If they fall below $540 million, payments will be increased pro rata

• Total payout from Discover may reach $1.225 billion