Discover Class Action Settlement: Potential Payments for Merchants Who Processed Transactions

A Class Action Settlement in the Making

From 2007 to 2023, merchants and acquirers who handled Discover debit card transactions might find themselves eligible for a payout due to a substantial class action settlement. This settlement arises from allegations that Discover misclassified certain consumer debit cards as commercial credit cards, leading to excessive interchange fees that affected merchants and payment processors.

Understanding the Settlement

This proposed settlement stems from three related lawsuits claiming that Discover’s classification mistakes resulted in financial burdens on merchants and other stakeholders. The errors, however, did not impact cardholders directly. It's crucial to note that Discover denies all allegations and asserts it has not admitted wrongdoing. Instead, this settlement aims to resolve the claims and offer various benefits to the members of the plaintiff group.

Who Is Affected?

The group eligible for this settlement includes merchants, merchant acquirers, and payment intermediaries who accepted misclassified transactions between January 1, 2007, and December 31, 2023. For detailed eligibility definitions and exclusions, those concerned should visit the official website, DiscoverMerchantSettlement.com.

What Compensation Can You Expect?

To partake in the settlement payout, affected parties need to file a claim by May 18, 2026. Discover has agreed to allocate between $540 million and $1.225 billion plus interest for qualifying claims. The precise amount each merchant receives will vary, depending on several factors outlined in the settlement agreement.

Options Moving Forward

Affected merchants have several choices regarding their participation in the settlement:
1. File a Claim: To receive payment, claims must be submitted before the deadline.
2. Opt-Out: Merchants can choose to exclude themselves from the settlement, retaining their right to individually sue Discover for the misclassification claims.
3. Object: If any aspect of the settlement is undesirable, objections can be raised. The deadline for opting out or filing objections is March 25, 2026.

Navigating this process can be complex, so it's advisable that merchants thoroughly review their options and seek guidance if necessary. The settlement process aims to provide relief to those affected by Discover's misclassifications throughout the years.

Conclusion

If your business engaged with Discover debit card transactions within the specified dates, it’s important to stay informed and take necessary actions to possibly benefit from this settlement. For further insights and to file claims or objections, visit the resource hub at DiscoverMerchantSettlement.com. This could be an important opportunity to alleviate potential losses faced by your business due to the misclassification of debit cards.