Two payment processing giants, Visa Inc and Mastercard said they are paying a total of $6.2 billion to settle and resolve class claims in the multi-district interchange litigation.
Visa said in a statement that the claims were originally brought by a class of U.S. retailers in 2005. The current agreement addresses monetary claims, and does not resolve class claims seeking modifications to network rules.
“After years of thoughtful negotiation, we are pleased to be able to reach this agreement and move forward in our partnership with merchants to provide consumers convenient, reliable, secure ways to pay,” said Kelly Mahon Tullier, executive vice president, general counsel, Visa. “This outcome benefits all parties and enables us to focus more of our resources and attention to building the future of digital commerce together.”
Visa said its share represents approximately $4.1 billion, which will be satisfied through funds previously deposited with the court plus the $600 million Visa deposited into its litigation escrow on June 28, 2018.
No additional funds are required for this class settlement. Visa’s share is covered under its U.S. Retrospective Responsibility Plan, which was created to insulate the company and class A shareholders from financial liability for certain litigation cases.