#USA #New York #Class Action #EMV Fraud #Chargeback Settlement

Overview of Class Action Settlement

In recent developments, a significant class action lawsuit pertaining to EMV chip fraud liability shift chargebacks closed with settlements reached against major credit card companies including Mastercard, Visa, Discover, and American Express. The litigation, known as B R Supermarket, Inc. et al. v. Visa, Inc. et al., highlights serious allegations suggesting that these companies conspired to shift the liability of fraudulent chargebacks from themselves onto merchants.

Background of the Lawsuit

This case originated from transactions made between October 1, 2015, and September 30, 2017, where merchants faced unreimbursed chargebacks due to fraud occurring on transactions made with EMV/chip-enabled cards. The core issue raised was that the credit card companies established nearly identical rules that effectively allowed them to transfer responsibility for these fraudulent charges from banks to merchants. This practice raised significant concerns under antitrust law, as merchants incurred financial losses due to a policy they claimed was unfairly enforced across all four major credit networks simultaneously.

The defendants, however, maintain that they did not engage in any wrongdoing and that their policies complied with applicable laws. Despite this stance, the attempted settlement has led to a significant payout aimed at addressing the grievances of affected merchants.

Who is Affected?

All merchants who experienced one or more unreimbursed chargebacks during the specified time frame are eligible for inclusion in the class action. This encompasses businesses impacted by the rules surrounding the Fraud Liability Shift imposed by Mastercard, Visa, Amex, and Discover. Notably, any members of the judiciary or government agencies are excluded from participation in the settlements. Moreover, merchants that previously opted out of the lawsuit by filing requests for exclusion will not be eligible to file a claim in the future.

Settlement Details

The total settlements agreed upon amount to a staggering $231.7 million. Although this sum appears substantial, affected merchants should note that there is currently no immediate payment expected. Class members will receive additional notifications regarding the process to submit claim forms in the future.

Claiming Payments

Merchants interested in pursuing a claim must keep an eye out for instructions on how to file a Claim Form, which will be dispatched later. It is crucial for all participants to understand that this is a process, and payout logistics will be established accordingly, potentially after the Court’s final approval.

How to Object

Merchants that find themselves dissatisfied with the terms of the settlement or class counsel's request for attorneys' fees can formally object by submitting their complaints by January 26, 2026. Detailed procedures to register objections can be found in the Long Form Notice available on the settlement website.

Final Fairness Hearing

A crucial Final Fairness Hearing is scheduled for April 27, 2026. During this hearing, the Court will evaluate any objections raised and decide whether to approve the proposed settlements and the associated request for attorney fees. The percentage of fees requested is notably 33.3% of the overall recovery from Discover and American Express and 27.5% from the Visa and Mastercard settlements. Furthermore, a service award up to $50,000 for each Class Representative is part of the compensation structure for their representation of the merchants involved.

Merchants or their legal advisors can attend this hearing but must file a Notice of Intention to Appear if they wish to voice their concerns.

Conclusion

The settlements present an important opportunity for merchants affected by EMV chip fraud chargebacks. With important dates looming and the complexity of claims and objections procedures, it is critical that merchants stay informed and proactive in understanding their rights and options as the finalization process unfolds.

For more detailed information, visit www.FraudLiabilityShiftLitigation.com or call the settlement hotline at 1-855-662-0073.