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A San Diego pizzeria has filed a proposed class action accusing Visa, Mastercard and five major banks of conspiring to keep credit-card fees paid by merchants high. The allegations have not been proven, and the proposed class seeks to cover U.S. merchants from Jan. 25, 2019, onward. The complaint says an earlier settlement covered fees only through Jan. 24, 2019.
A San Diego pizzeria has filed a proposed class action against Visa, Mastercard and five major banks, alleging they conspired to keep fees merchants pay on card transactions artificially high. The complaint seeks to represent U.S. merchants that accepted the networks’ credit cards from Jan. 25, 2019, onward, a period the plaintiff says was not covered by an earlier monetary settlement.
The 134-page complaint names Bank of America, Capital One, Chase Bank, Citibank and Wells Fargo alongside Visa and Mastercard. It alleges that the companies coordinated interchange fees—charges merchants pay to banks that issue cards—and maintained rules that weakened competition. These are claims in the lawsuit, not findings by a court.
According to the complaint, merchants that accept a Visa or Mastercard credit card must accept all cards from that network, regardless of the fees attached. The suit also alleges that restrictions on steering customers to lower-cost payment methods, including through surcharges, leave merchants with limited ways to avoid those charges. It claims the rules reduce incentives for banks and networks to compete on price.
The filing also challenges fees charged by Visa and Mastercard for use of their payment networks, describing them as an additional cost to merchants. The complaint says merchants now pay more than $100 billion annually to accept the two networks’ credit cards. That figure is the lawsuit’s allegation; the source report does not supply an independent calculation or a comparison baseline.
Why the Fee Claims Matter
If the allegations are proven, the case could affect the costs businesses incur when customers pay by credit card and the rules governing merchants’ ability to choose or encourage other payment methods. Merchants may absorb processing costs or pass some costs along through prices, though the filing itself does not establish how any particular business handles them.
The dispute also concerns what remedy may be available for fees charged after the earlier settlement’s class period. The plaintiff argues that merchants continued to face harm after that period ended. A court would need to evaluate the legal claims and evidence before determining whether the defendants violated the law or whether the proposed class can proceed.
merchant credit card processing fee calculator
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The Earlier Settlement Period
The complaint points to earlier multidistrict litigation over merchant fees. A court approved a monetary class-action settlement in December 2019, providing more than $5 billion in relief, according to the source report. That settlement covered transactions only through Jan. 24, 2019, the complaint says.
A separate settlement seeking changes to rules was preliminarily approved, the report says, but its benefits would apply prospectively. The new plaintiff argues that neither arrangement compensates merchants for fees paid from Jan. 25, 2019, onward. The lawsuit’s proposed class would include individuals, businesses and other entities in the United States that accepted Visa- or Mastercard-branded credit cards during the specified period, continuing until the alleged effects cease.
““a deadweight toll on virtually every credit card purchase in America””
— The complaint
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Claims Await Court Review
The allegations have not been established in court. The source report does not state whether the defendants have responded, provide a case number or filing date, or describe the lawsuit’s current procedural status. It is also unclear whether a judge will certify the proposed class, what evidence the parties will present, or whether the case will result in damages or other relief. The complaint’s estimates and descriptions of the market remain claims by the plaintiff unless confirmed through evidence and court findings.
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Court Rulings and Case Schedule
The case must proceed through court before any remedy can be determined. Relevant next developments would include responses from Visa, Mastercard and the bank defendants, any early motions challenging the claims, and a decision on whether the proposed class may be certified. The source report gives no hearing date or schedule, so the timing of those steps is not yet clear.
Any outcome would depend on the court’s rulings and the evidence concerning the alleged fee-setting practices, the challenged rules and the period after Jan. 24, 2019. For now, the filing records the pizzeria’s allegations and request to represent merchants; it does not establish liability or guarantee compensation.
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Key Questions
Who is being sued?
The proposed class action names Visa, Mastercard, Bank of America, Capital One, Chase Bank, Citibank and Wells Fargo.
What does the lawsuit allege?
The pizzeria alleges that the companies used fee schedules and network rules to limit competition and keep merchant card costs high. Those allegations have not been proven.
Which merchants could be included?
The proposed class would cover U.S. individuals, businesses and other entities that accepted Visa- or Mastercard-branded credit cards from Jan. 25, 2019, until the alleged anticompetitive effects end. A court has not certified the class in the information provided.
How does the earlier settlement relate to this case?
The complaint says an earlier monetary settlement covered transactions only through Jan. 24, 2019. The plaintiff argues that merchants’ later fees were not compensated under that settlement.
Have the defendants been found liable?
No liability finding is reported. The claims remain allegations, and the source does not say whether the defendants have filed responses or when the court will next act.
Source: hn
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