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EMV/chip
Fraud Liability Shift chargeback

If you are a merchant who incurred an unreimbursed EMV/chip Fraud Liability Shift chargeback on a Visa, Mastercard, American Express, or Discover credit or debit card transaction that occurred from October 1, 2015, to September 30, 2017, you may be a member of a Settlement Class. 

Settlement Total: $231,700,000

Class period

October 1, 2015 through and including September 30, 2017

Deadline: Not Yet Set

Proposed Class Members

All merchants who incurred one or more unreimbursed chargeback(s) between October 1, 2015 through and including September 30, 2017, pursuant to the Fraud Liability Shift for the assessment of Mastercard, Visa, Discover and/or Amex payment card chargebacks.


Excluded from the Class are members of the judiciary and government entities or agencies.

Settlements

Settlement agreements have been separately reached with (1) Amex ("Amex Settlement"), (2) Discover ("Discover Settlement"), and (3) Visa and Mastercard ("Visa/Mastercard Settlement").


If the Amex Settlement is approved, Amex will pay $20 million (as defined in the Amex Settlement Agreement).

If the Discover Settlement is approved, Discover will pay $12.2 million (as defined in the Discover Settlement Agreement).

If the Visa/Mastercard Settlement is approved, Visa will pay $119.7 million and Mastercard will pay $79.8 million (as defined in the Visa/Mastercard Settlement Agreement).

Background

The lawsuit is a class action alleging Defendants violated antitrust laws by entering into a conspiracy to adopt the same policy via nearly identical rules for shifting billions of dollars in liability for fraudulent charges, or "chargebacks," from banks to merchants (the Fraud Liability Shift) when a credit or debit card was enabled with EMV/chip technology and the merchant's terminal was not enabled for EMV/chip technology and made the liability shift effective on the same day and in the same manner for all four networks.


Defendants deny the legal claims and deny any wrongdoing or liability. The Court has not made any determination of any wrongdoing by Defendants, or that any law has been violated. Instead, Plaintiffs and Defendants have each agreed to a settlement to avoid the risk, cost, and time of continuing the lawsuit.

Defendants

    Discover, Mastercard, Visa, and Amex
RETURN TO CURRENT SETTLEMENTS

This is not an official Court Notice. Information contained in this Summary is subject to change.