How the Payment Card Interchange Fee Settlement Works and Who Gets Paid
What the interchange settlement is and who qualifies
The payment card interchange fee settlement is a legal agreement that requires Visa, Mastercard, and American Express to pay money to merchants and consumers who were overcharged on processing fees between 2004 and 2019. The settlement does not require you to do anything to receive your share — the payment card networks themselves identify who qualifies based on transaction records they already hold.
You may have access to if you were a consumer who made purchases with a Visa, Mastercard, or American Express card during the settlement period. Merchants — businesses that accepted these cards — also receive payments, but through a separate process. The settlement money comes from the card networks' own funds, not from your bank or the store where you shopped.
The settlement covers interchange fees, which are the per-transaction charges that merchants pay to card networks and banks when you swipe or tap your card. These fees were the subject of a lawsuit arguing the networks set them too high and without fair competition. The settlement does not change how interchange fees work going forward — it only compensates for what was charged during the specific years covered.
Key Takeaways
- You do not need to submit a claim or take any action to receive your payment — the card networks identify you automatically using their transaction records.
- Payments are distributed through the banks and card issuers that processed your transactions, so you will see the money appear in your account or on your statement.
- The settlement covers purchases made between 2004 and 2019 with Visa, Mastercard, or American Express cards.
- If you no longer have the card account you used during the settlement period, you may need to contact your former bank to claim your share.
- The payment amount varies by person and depends on how many may have access to transactions you made and the size of those transactions.
How the payment reaches you
The card networks do not send you a check or email. Instead, they send the settlement funds to the banks and card issuers that issued your card during the settlement period. Your bank then deposits your share directly into the account associated with that card, or credits it to your card statement as a statement credit.
If you still have the card account you used during the settlement years, watch your account statements between late 2024 and 2025 for a credit or deposit. The timing varies by bank — some process payments in batches, and others may take several months to distribute their portion of the settlement.
If you closed the card account or switched banks since 2019, your payment may be held by the original card issuer. You will need to contact that bank directly to claim it. Have your old account number or the card number itself ready when you call. If you cannot locate the bank, you can search the settlement administrator's website or call the settlement hotline to find out which issuer holds your payment.
What happens if your payment is not claimed
If you do not receive your payment within a reasonable time after it is issued by your bank, the money does not disappear — it goes into an unclaimed funds pool. Each state maintains a database of unclaimed property, and you can search for your settlement payment through your state's unclaimed property office.
To find unclaimed funds, visit your state's treasurer or comptroller website and search by your name. Many states allow you to file a claim online. If you find your settlement payment listed, follow the state's process to claim it. The state will then contact the card issuer to release the funds to you.
You have no deadline to claim unclaimed settlement funds — they remain available indefinitely. However, the sooner you search and claim, the sooner you receive the money.
Payments to merchants and businesses
Merchants who accepted Visa, Mastercard, or American Express cards during the settlement period also receive payments, but the process is different from consumer payments. Merchants do not receive automatic deposits — they must submit a claim to the settlement administrator to receive their share.
If you own a small business or were a merchant during the settlement years, you will need to provide documentation of your card processing during the settlement period, such as merchant statements or processing records. The settlement administrator will use this information to calculate your payment. Deadlines for merchant claims vary, so check the settlement website or contact the administrator directly if you operated a business that accepted these cards.
Taxes and how the settlement affects your finances
The settlement payment you receive may be considered taxable income by the IRS, depending on how it is classified. Some settlement payments are treated as a return of overcharged fees (not taxable), while others may be treated as income. Your bank or card issuer should send you a tax form — usually a 1099 or similar document — if the payment is taxable.
Keep any documentation you receive about your settlement payment, including statements showing the credit or deposit and any tax forms. If you receive a 1099 and disagree with the tax treatment, you can discuss it with a tax professional or include a note with your tax return explaining your position.
The settlement payment does not affect your may be able to access for government benefits like Medicaid, SNAP, or SSI, because it is a one-time payment for a past overcharge, not ongoing income. However, if you receive SSI, the payment may count toward your resource limit temporarily, so consult your benefits caseworker if you have concerns.
What to do if you think you are owed money but have not received it
Start by checking your bank or card issuer's statements for the past six months. Look for any credits labeled "settlement," "interchange," or the settlement administrator's name. If you find it, you have already received your payment.
If you do not see a credit, contact the bank or card issuer that issued your card during the settlement period. Have your account number or old card number ready. Ask them whether your settlement payment has been issued and, if so, when it was deposited or credited. If they confirm it was sent but you did not receive it, ask them to investigate the transaction.
If the bank says no payment was issued to your account, you can contact the settlement administrator directly. The administrator maintains a database of all may be able to access cardholders and can tell you whether you are included in the settlement and what your payment amount is. You can also search for unclaimed funds through your state's unclaimed property office.
Understanding the settlement timeline and what changed
The interchange fee settlement was finalized in 2015, but payments to consumers did not begin until several years later. The delay occurred because the settlement required court approval, and the card networks needed time to calculate individual payment amounts based on transaction data. Payments began rolling out to consumers and merchants in 2024 and will continue through 2025.
The settlement does not change how interchange fees work today. Card networks still charge merchants processing fees, and those fees are still passed along in the form of higher prices for goods and services. The settlement only compensates for the fees charged during the 2004–2019 period, which a court found were set without fair competition among the networks.
Future interchange fees are now subject to different rules in some cases — for example, debit card interchange fees are capped under the Durbin Amendment — but credit card interchange fees remain largely unregulated. The settlement does not create new regulations; it only addresses the past overcharges.
Frequently Asked Questions
Do I have to pay taxes on my settlement payment?
It depends on how the IRS classifies your payment. Some settlement payments are treated as a refund of overcharged fees and are not taxable. Others may be taxable income. Your bank or card issuer will send you a tax form if the payment is taxable. Keep that form and include it with your tax return.
What if I made purchases with multiple cards during the settlement period?
You will receive a separate payment for each card account you used. Each bank or card issuer will deposit or credit your share based on your transactions with that specific card. If you used three different cards from three different banks, you should expect three separate payments.
Can I claim the settlement payment if I am not a U.S. citizen?
Yes. The settlement covers all consumers who made purchases with Visa, Mastercard, or American Express cards during the settlement period, regardless of citizenship status. Your payment will be processed through your bank or card issuer the same way as any other cardholder's payment.
What if my bank says they never received settlement funds for my account?
Contact the settlement administrator to verify that you are included in the settlement and to find out what your payment amount is. If the administrator confirms you are may be able to access but your bank says they did not receive funds, the administrator can investigate further or direct you to claim your payment through your state's unclaimed property office.
How much money will I receive?
The amount varies by person and depends on how many may have access to transactions you made with each card and the size of those transactions. The settlement administrator can tell you your specific payment amount if you contact them or search their database. Payments range from a few dollars to several hundred dollars per cardholder.