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A San Diego pizzeria has filed a proposed class action accusing Visa, Mastercard and five major banks of using rules that kept credit-card fees paid by merchants high. The complaint seeks to represent U.S. merchants that accepted the networks’ cards from Jan. 25, 2019, onward; the allegations have not been established in court.
A San Diego pizzeria has filed a proposed class action accusing Visa, Mastercard and five major banks of maintaining rules that kept credit-card fees paid by merchants artificially high after January 2019. The complaint seeks to represent U.S. businesses and other entities that accepted either network’s cards during the period beginning Jan. 25, 2019; its allegations remain unproven.
The 134-page complaint alleges that Visa and Mastercard worked with Bank of America, Capital One, Chase Bank, Citibank and Wells Fargo to set uniform interchange-fee schedules. Interchange fees are charges merchants pay to banks that issue cards when customers make purchases. The suit describes those fees as effectively non-negotiable and says the defendants’ arrangements prevented competition from pushing them down.
The plaintiff claims that rules requiring merchants that accept one Visa or Mastercard credit card to accept all cards on that network leave businesses unable to reject higher-cost cards. It also alleges that restrictions on steering customers toward cheaper payment methods, including surcharging for particular cards, limit merchants’ ability to respond to fees. The complaint separately challenges network fees charged by Visa and Mastercard, saying those add to merchants’ costs.
The suit says merchants now pay more than $100 billion a year to accept Visa and Mastercard credit cards. That figure is presented in the complaint; the source report does not independently verify it or provide a separate calculation. The lawsuit asks for relief on behalf of merchants that accepted the networks’ cards from Jan. 25, 2019 until the alleged effects of the challenged conduct end.
Merchants Seek Relief for Later Fees
The case targets costs that merchants incur on card purchases and that may affect their operating expenses. If the allegations were proven, a court could find that network rules restricted merchants’ ability to reject costly cards or encourage customers to use lower-cost payment methods. The complaint argues that this weakened pressure on banks and card networks to compete over fees.
The proposed class period matters because it begins immediately after the end date cited for an earlier monetary settlement. The new filing seeks to address alleged injuries from a later period, but it does not establish that the defendants violated the law or that merchants will receive compensation. Any outcome would depend on court proceedings, including whether the case can proceed as a class action.
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Earlier Settlement Ended in 2019
The complaint links its claims to earlier multidistrict litigation over payment-card fees. It says a court approved a settlement in December 2019 that provided more than $5 billion in monetary relief to merchants, covering transactions through Jan. 24, 2019. The new proposed class action focuses on transactions starting the following day, according to the filing.
The source report also says a separate settlement seeking changes to network rules had received preliminary approval. According to the complaint, any benefits from those changes would apply prospectively, while merchants would not receive compensation through that settlement for fees paid since Jan. 25, 2019. The filing contends that the earlier cases therefore do not resolve the later-period claims now being brought.
““a deadweight toll on virtually every credit card purchase in America””
— The complaint, as quoted in the ClassAction.org report
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Claims Await Court Review
The source report does not identify the filing date, the court, a case number or any response from Visa, Mastercard or the named banks. It also does not say whether the defendants have been served or whether they have answered the complaint. The claimed coordination, fee effects and damages have not been established by a court.
The proposed class has not been certified. The court would need to consider whether the case can proceed on behalf of the broad group described in the complaint, and the source does not provide a hearing schedule or a projected decision date. It is also unclear what remedies the plaintiff will ultimately seek or could obtain if the case succeeds.
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Court Decisions Will Shape the Case
The next developments will depend on court filings and rulings. The defendants may respond to the allegations, and the court may consider procedural challenges and whether to certify a merchant class. No deadlines or hearings are listed in the source report, so a timetable cannot yet be confirmed.
For now, the filing is a set of allegations by the pizzeria, not a finding that the companies engaged in unlawful conduct. Any eventual ruling or settlement could clarify whether merchants can pursue claims for fees charged after Jan. 24, 2019, separately from the earlier litigation described in the complaint.
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Key Questions
Who is named in the lawsuit?
The proposed class action names Visa, Mastercard, Bank of America, Capital One, Chase Bank, Citibank and Wells Fargo, according to the source report.
What does the complaint allege?
It alleges that the card networks and banks used fee schedules and network rules that limited competition and kept merchant costs high. These claims have not been proven in court.
Which merchants could be included?
The proposed class covers individuals, businesses and other entities in the United States that accepted Visa-branded or Mastercard-branded credit cards from Jan. 25, 2019 until the alleged anticompetitive effects cease. A court has not certified the class.
How does this relate to the earlier settlement?
The complaint says a settlement approved in December 2019 provided more than $5 billion in monetary relief for merchants, but covered a class period ending Jan. 24, 2019. This new suit concerns alleged fees from the next day onward.
Have Visa, Mastercard or the banks responded?
The source report does not include responses from the defendants or give details about any answers filed in court.
Source: hn
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