Visa and Mastercard Agree to $167.5 Million Settlement Over Independent ATM Surcharges

Payment networks Visa Inc. and Mastercard Inc. have agreed to establish a $167.5 million settlement fund to resolve a class-action antitrust lawsuit over non-bank ATM withdrawal fees, according to reporting by Yahoo Finance (https://finance.yahoo.com/personal-finance/banking/article/visa-mastercard-1675-million-settlement-could-mean-money-for-atm-users-who-qualifies-174156944.html).

The litigation, known as Burke v. Visa Inc., focuses on independent ATMs frequently operated in convenience stores, gas stations, grocery stores, hotels, and bars—venues that routinely levy direct surcharges on cash withdrawals.

Plaintiffs alleged that consumers paid excessive, non-reimbursed surcharge fees because network rules barred independent ATM operators from routing transactions through lower-cost alternative networks at discounted rates. Court filings argued that operators would otherwise have had an incentive to pass along network savings to customers in the form of lower fees.

The nationwide class period covers cash withdrawals made from deposit accounts using a Visa or Mastercard card at independent U.S. ATMs between Oct. 24, 2007, and Aug. 14, 2026, where the resulting surcharge was not fully reimbursed by the cardholder's bank. The settlement also encompasses state-specific subclasses in California, Illinois, Massachusetts, and Michigan.

Both Visa and Mastercard agreed to the settlement terms without admitting liability. The $167.5 million fund will cover attorneys' fees, administrative expenses, taxes, and cash distributions to eligible claimants, with individual payout amounts depending on the total volume of valid claims filed.

Class members may submit claims, exclude themselves, or file objections online at www.nonbankatmsurchargesettlement.com ahead of the Feb. 10, 2027 deadline. Payouts are scheduled to be distributed following a final court approval hearing in early 2027.