On December 19, 2025, Visa and Mastercard agreed to a significant $167.5 million settlement in a class action lawsuit that has been ongoing for over a decade. The lawsuit accused the two payment giants of conspiring to keep ATM access fees artificially high, ultimately costing consumers millions of dollars in unreimbursed charges when using independent, non-bank ATMs. This proposed settlement is currently awaiting judicial approval in federal district court in Washington, D.C., and, if approved, will bring an end to years of legal battles over ATM fees that many cardholders believe were inflated due to restrictive practices by Visa and Mastercard.
The class action lawsuit, first filed in 2011, accused Visa and Mastercard of implementing network rules that limited competition in the ATM market, allowing them to set fees that were higher than necessary. The plaintiffs argued that these rules restricted independent ATM operators’ ability to compete on pricing, ultimately leading to higher fees for consumers who needed to withdraw cash from machines that were not affiliated with their bank. These ATM operators, which are often located in convenience stores, gas stations, and other non-bank locations, typically charge consumers additional fees for using their machines, fees that were allegedly made even higher due to the anti-competitive actions of the payment networks.
In the proposed settlement, Visa will contribute $88.8 million to the fund, while Mastercard will contribute $78.7 million. Though both companies have denied any liability for the claims made in the lawsuit, they have agreed to this settlement as a way to resolve the case without continuing a lengthy and costly legal battle. If approved by the court, the settlement will provide reimbursement to millions of cardholders who were charged high fees when using independent, non-bank ATMs.
The settlement also represents a significant development in the broader conversation about ATM fees and the role of payment networks in setting those fees. For years, consumers have voiced frustration over the high costs associated with using ATMs outside their bank’s network. Independent ATM operators are typically able to charge higher fees because they do not have the same financial backing as banks, and because many consumers rely on these machines when they are not near a bank branch. However, the lawsuit suggests that Visa and Mastercard played a role in creating a market environment where competition on ATM fees was limited, exacerbating the cost to consumers.
This settlement follows earlier agreements by Visa and Mastercard to resolve similar claims related to ATM fees charged by bank-operated machines. In those cases, the companies agreed to compensation schemes aimed at reimbursing consumers who were overcharged. The new settlement, however, marks a significant step in addressing the issue of fees on non-bank ATMs, which many believe have been the subject of much less oversight.
The legal actions and subsequent settlements reflect a growing wave of legal and regulatory scrutiny focused on the payment networks’ fee structures. Over the past few years, both Visa and Mastercard have faced increasing pressure from lawmakers, regulators, and consumer advocacy groups who argue that the companies’ practices contribute to the rising cost of financial services. The new settlement is just the latest in a series of cases that demonstrate the industry’s vulnerability to legal challenges over its fee practices. These challenges are part of a broader movement to ensure more transparency and fairness in the financial services industry, particularly regarding hidden or excessive fees that burden consumers.
The issue of ATM fees has become a focal point in the ongoing debate about the financial industry’s accountability to consumers. As Americans increasingly rely on electronic payments and automated services, concerns about the fairness of fees associated with these services have grown. Critics of the payment networks argue that consumers should not have to pay exorbitant fees simply for withdrawing cash from an ATM, especially when the fee structures seem to be artificially inflated through anti-competitive practices.
Visa and Mastercard have long been the subject of legal challenges related to their pricing and fee structures. As the settlement moves through the courts, it highlights the increasing need for reforms in how financial institutions and payment processors set their fees. The industry is likely to face even more regulatory scrutiny in the future as the demand for more transparent and equitable practices continues to grow.
Ultimately, this settlement represents a significant step forward for consumers who have been impacted by high ATM fees. If the court approves the agreement, it will ensure that millions of cardholders who were charged excessive fees will receive compensation. More broadly, it could also serve as a catalyst for further reforms within the financial industry as regulators and lawmakers continue to scrutinize the business practices of major payment processors like Visa and Mastercard.