#United States #Class Action #Chicago #Settlement #Discover Card

Class Action Settlement Information for Discover Card Users

From 2007 to 2023, Discover credit card users might be entitled to benefits from a collective settlement reached in a series of lawsuits. These lawsuits claim that Discover improperly classified certain consumer credit cards as business cards, leading to excessive transaction fees imposed on merchants.

What Are the Lawsuits About?

In total, three lawsuits have come to an agreement regarding a proposed class action settlement. The crux of the matter is that Discover is accused of misclassifying its consumer credit cards, which resulted in merchants and other related entities facing inflated exchange fees. It is important to note that this misclassification has not adversely affected cardholders. While Discover denies the allegations, the proposed agreement aims to resolve these lawsuits, ensuring that affected parties can receive payment provided the court approves it.

Who Is Affected?

The settlement will cover all terminal merchants, acquiring institutions, and payment intermediaries that accepted or processed transactions of misclassified cards from January 1, 2007, to December 31, 2023. To get comprehensive details about the settlement class, including terminologies and excluded entities, interested parties can visit DiscoverMerchantSettlement.com.

What Can You Expect?

To claim a portion of the settlement, most affected parties must submit a claim application by May 18, 2026, unless exceptions apply. Discover has agreed to pay between $540 million and $1.225 billion (inclusive of interest) depending on the validity of the submitted claims. The amount each claimant receives will be determined based on various criteria, which may include the number of claims filed and the period of misclassification.

Options Beyond Claims

Besides filing a claim, merchants have the option to opt-out of the settlement agreement up until May 18, 2026. If you choose this route, you will relinquish any right to financial benefits from this settlement but still retain the ability to pursue claims related to the misclassification in separate legal action against Discover. If you do not opt-out and the court ratifies the settlement, you’ll be bound by the terms of the court's order, thus forfeiting your rights to any further claims connected to the topic of misclassified credit card transactions.

Moreover, if you have concerns or objections regarding the settlement agreement, you can voice these before the court. The deadline for opting out or filing objections is on March 25, 2026. It's strongly encouraged to monitor DiscoverMerchantSettlement.com for comprehensive guidance on these choices.

In conclusion, this settlement presents an opportunity for numerous merchants affected by Discover's alleged misclassifications to receive compensation. Those involved need to act soon to secure their interests as the deadlines approach. Stay informed and consider your options accordingly; the resolution of these claims could significantly affect your finances.

For further information or assistance, remember to visit the official settlement website.