Visa-Mastercard 2025 Settlement: The year 2025 has brought a turning point in the business world. The long-running fee dispute between two major payment processing companies like Visa and Mastercard has now been resolved in the form of a historic settlement. The biggest impact of this settlement has been on those merchants who transact through First Data. Let us know in detail in this article what is this Visa-Mastercard 2025 Settlement, what is its relation to First Data and what benefits or changes will merchants see from this.
What is Visa-Mastercard 2025 Fee Settlement?
Visa and Mastercard were accused for years of charging merchants unnecessarily high fees for credit and debit card transactions. Many trade associations and merchants objected to this and filed a class action lawsuit. After a long hearing and legal battle, in 2025 both companies finally accepted a multi-billion dollar settlement.
Under this settlement, merchants will get a partial refund of the excess fees already charged. Specifically, merchants who made transactions through companies like First Data (now Fiserv) are being considered eligible for this refund or compensation.
Why are First Data Merchants directly affected?
First Data is a leading platform providing payment processing services to millions of merchants in the US and around the world. The Visa-Mastercard settlement makes it clear that merchants who transact through First Data will also get benefits. This means that merchants who accepted card payments through First Data between 2004 and 2019 may be eligible for claims.
What is the total amount of the settlement?
Visa and Mastercard have collectively created a settlement fund of about $5.6 billion dollars (about Rs 46,000 crore). This amount will be distributed among merchants who have suffered losses due to service charges or card-acceptance fees (interchange fees) in the past years.
Who will be compensated as merchants?
The latter conditions include the following in order to have a settlement claim:
- The merchant has to have received payments with Visa or Mastercard between January 1, 2004, and January 19, 2019.
- It must conduct transactions through First Data or another certified payment processor.
- The merchant must be registered in the US (but some international claims may also be approved).
What are the necessary steps for First Data Merchants?
If you are a First Data merchant, you must take the following steps:
- Fill out the Claim Form: You must fill out a valid claim form and submit it through the settlement website or portal.
- Have documentation ready: You must have records of your past transactions and fees.
- Deadline: The deadline when the claim should be submitted should not be overlooked. It is to be completed during the third quarter of 2025.
Is this settlement a one-time one?
Yes, this settlement is a one-time compensation. This means that if similar fees are recovered by Visa and Mastercard in the future, then separate legal action will be required for it. For now, this compensation is applicable only for the period from 2004 to 2019.
What are the benefits to merchants?
- Monetary refund: The compensation amount can be deposited directly in the bank account.
- Transparency in fees: In future, Visa and Mastercard will have to bring more transparency in the matter of merchant fees.
- Legal protection: Merchants will not need to fight a lawsuit again on the same issue in the future.
Are all merchants automatically part of this settlement?
No. Only those merchants who register through the settlement claim portal and submit all the required documents on time can avail this benefit. This is not an automatic process.
Can merchants from India also avail this settlement?
If an Indian merchant is registered in the US and has been transacting there through First Data, then in some special cases he may be eligible for a claim. However, in general this settlement is applicable to US-based merchants.
What precautions should merchants take?
- Avoid any fake calls, emails or scams that ask for bank or personal information in the name of settlement.
- Claim can only be filed on the specific settlement administrator or web site.
- Approach your accountant or legal representative when required.
Conclusion
The Visa-Mastercard 2025 settlement is more than a financial support to merchants, it affirms a new era of transparency and accountability to the actors in the payment sector. This is a golden opportunity for merchants who have worked with First Data – to receive compensation for their past transactions. This settlement will not only help merchants get their money back, but it will also help change the rules of the fee structure.
FAQs
Q1. What is the Visa-Mastercard 2025 settlement about?
A. The 2025 settlement refers to a multi-billion-dollar agreement resolving long-standing lawsuits against Visa and Mastercard for allegedly overcharging merchants on interchange (swipe) fees. It provides financial relief to eligible merchants who accepted Visa or Mastercard payments between 2004 and 2019.
Q2. How much is the total settlement amount?
A. The total proposed settlement is approximately $5.6 billion, to be distributed among eligible merchants based on their transaction volumes during the covered period.
Q3. Who qualifies for this settlement?
A. Merchants in the U.S. (or with a U.S. presence) who accepted Visa and/or Mastercard payments from January 1, 2004 to January 25, 2019, including those who used First Data (now Fiserv) for payment processing, may be eligible.
Q4. What is First Data’s role in this settlement?
A. First Data is a major payment processor. Many merchants used First Data to process Visa/Mastercard transactions. Merchants who did so during the claim period are part of the eligible group and may file for compensation.
Q5. Do First Data merchants need to take any action to receive funds?
A. Yes. Merchants must submit a claim form via the official settlement website to receive compensation. Claims will not be processed automatically.