One of the advantages of working with a specialized accounting and payroll firm is being up to date on news that other accounting and payroll firms would skip.
Visa, MasterCard, Defendant Banks may owe you money – Interchange Fess AntiTrust Litigation
There has been a class-action suit filed against Visa, Mastercard and Defendant Banks for over-charging on their fees. A new settlement has been reached and all eligible merchants including restaurants and bars could be eligible for a share of the settlement. The settlement is between $5.5-6.2 billion.
When a cardholder makes a purchase of food or beverage at your restaurant or bar using a credit or debit card, there is an interchange fee charged to the merchant by the bank. The fee is usually 1-2% of the purchase price including tips.
If you took Mastercard or Visa during the years January 1, 2004 and January 25, 2019, you would be a potential claimant.
To estimate your potential share of the settlement take an average of your credit card sales during the time period above times your interchange fee rate which is usually 1-2 per cent. Take that number times 4 per cent. Example if you have been in business the entire settlement period and your credit card sales have been consistent: | |
Credit card sales per year: | $750,000 |
Times average credit card rate | 1.5% |
Equals credit card fees | $11,250 |
Times potential settlement rate | 4% |
Potential dollar value of settlement | $450 |
15 year lookback period | $6,750 |
Your potential settlement could be more or less depending on the amount of your credit card sales.
There is a formal procedure required to make a claim, proof documents that have to be supplied and possible professional fees. If you think it is worth it to proceed with a claim, contact Jim Humanik at Kallas.
