Major ATM Settlement: Visa and Mastercard to Pay $167.5 Million Over Fee Dispute

In a significant development regarding ATM settlement terms, Visa and Mastercard have agreed to pay a combined $167.5 million to resolve consumer claims that the payment networks conspired to maintain artificially high ATM access charges. The federal court in Washington is currently reviewing the proposed settlement, which could provide compensation to millions of ATM users affected by the fee structure. Visa will contribute $88.8 million while Mastercard will provide $78.7 million to the settlement fund, with the resolution pending judicial approval.

What Was the ATM Settlement About?

The case traces back to 2011 when plaintiffs first alleged that network policies implemented by Visa and Mastercard prevented independent ATM operators from charging lower fees to consumers. These rules, according to the lawsuit, gave the two companies significant control over ATM pricing across the industry. The class-action complaint argued that this coordinated approach resulted in consumers paying inflated fees whenever they accessed cash outside their primary banking network.

Legal representatives for the plaintiffs characterized this ATM settlement as a favorable resolution given the uncertainties of prolonged litigation. They are seeking court approval to collect legal fees of up to 30 percent of the settlement fund, which would amount to approximately $50 million for attorney compensation.

Previous Legal Actions and Resolutions

This settlement represents the latest in a series of legal actions targeting payment network ATM fee practices. In 2025, Visa and Mastercard addressed separate claims brought by another consumer group regarding fees at bank-operated ATMs, agreeing to pay $197.5 million. Additionally, several banks named in the broader litigation completed their own settlement in 2021, committing $66 million to compensate affected consumers.

The court is currently hearing three related matters in the same jurisdiction, with a third lawsuit initiated by independent ATM owners and operators still pending resolution. This ongoing litigation underscores persistent concerns about fee-setting practices in the ATM industry.

Ongoing Antitrust Challenges Ahead

Beyond the ATM settlement issues, Visa continues to face other antitrust scrutiny from regulatory authorities. The US Justice Department has brought a separate case alleging monopolistic conduct in the debit card market—accusations Visa has disputed. These parallel legal challenges suggest the payment network industry remains under intense regulatory examination regarding competitive practices and consumer protection.