Discover Reaches Settlement Over Card Classification Practices

Did you accept or process Discover card transactions between January 1, 2007, and December 31, 2023? You may be eligible to participate in this settlement.

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Who Is Eligible?

This settlement applies to end merchants, merchant acquirers, and payment intermediaries that processed or accepted Discover card transactions that were improperly classified during the applicable class period.

Proof of Participation

Documentation requirements differ depending on the type of class member and are detailed on the official settlement website.

Settlement Overview

Additional Information

Discover has agreed to pay $1.225 billion to settle a class action lawsuit alleging that it improperly categorized certain consumer credit cards as commercial cards. According to the claims, this practice resulted in higher interchange fees being charged to merchants and payment processors.

The lawsuit alleged that:

• Certain Discover transactions were incorrectly classified
• Merchants and intermediaries were charged higher fees as a result
• These practices violated federal and state laws governing fair payment processing

Discover has denied all allegations but agreed to resolve the case to avoid the cost and uncertainty of continued litigation.

What Class Members May Receive

Class members who file an approved claim may receive a cash payment based on the amount of interchange fees they overpaid during the class period. Key settlement terms include:

The total settlement payout may reach up to $1.225 billion

Minimum guaranteed payment: $10

If total base payments exceed $50 million, individual payments will be reduced on a pro rata basis

If total base payments are less than $540 million, payments will be increased on a pro rata basis

Wondering if you qualify? If you believe you’ve been impacted by a similar issue, explore our current class action lawsuits and open settlements you may be eligible to join.

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