Visa, Mastercard Resolve Another Major ATM Fees Case With $167.5 Million Payout

Payment giants Visa and Mastercard are settling yet another significant antitrust dispute, this time committing a combined $167.5 million to resolve allegations surrounding ATM access fee practices. Under the settlement framework—which requires federal court approval in Washington—Visa will contribute approximately $88.8 million while Mastercard supplies roughly $78.7 million to establish a compensation mechanism for potentially millions of ATM users affected by the disputed practices.

The Core Allegations and Legal Timeline

The original litigation dates back to 2011, when plaintiffs first challenged what they characterized as anti-competitive conduct by the two payment networks. According to the claims, network regulations established by Visa and Mastercard effectively blocked independent ATM operators from delivering more competitive fee structures to consumers. This practice, the lawsuit argued, artificially inflated access costs across the industry by restricting market alternatives.

Both companies have maintained that they engaged in no improper conduct. However, the settlement reflects their decision to resolve the matter without admitting liability, a common approach in complex litigation involving multiple defendants.

The Broader Settlement Landscape

This latest resolution represents one component of a multifaceted legal landscape surrounding ATM pricing. The previous year saw Visa and Mastercard agree to a $197.5 million settlement addressing separate consumer claims involving bank-operated ATM fee structures—a distinct group of complainants from the current case. Additionally, financial institutions directly implicated in the broader dispute agreed to a $66 million settlement back in 2021.

Currently, the payment networks are navigating at least three interconnected cases within the same judicial venue, indicating the complexity and scope of these antitrust challenges.

The Fees and Next Steps

The plaintiffs’ legal team characterized the proposed agreement as advantageous given litigation risks, particularly the unpredictability and expense of extended court proceedings. They have indicated an intention to petition the court for legal fees representing up to 30 percent of the settlement fund—potentially amounting to approximately $50 million—to compensate for representation throughout the dispute.

One additional lawsuit, pursued by independent ATM owners and operators specifically, remains unresolved in the system.

Broader Antitrust Pressures

Beyond ATM-related disputes, Visa faces mounting regulatory scrutiny from multiple fronts. The U.S. Justice Department has initiated antitrust action alleging monopolistic control within the debit card payment sector, accusations that Visa has disputed. These enforcement actions reflect intensifying government focus on payment network competitive practices across multiple segments.

At current market levels, Visa trades at $346.95, representing a modest 0.27 percent daily gain on the New York Stock Exchange.