Visa and Mastercard $167.5 Million ATM Fee Settlement for Unlawful Surcharge Charges

Visa and Mastercard are facing a proposed class action settlement of $167.5 million over alleged “unlawful surcharge” fees charged at nonbank ATMs. The case, *Burke v. Visa Inc.*, was filed in federal court and claims that Visa and Mastercard network rules restricted how independent ATM owners could charge customers—specifically by allegedly preventing differential access charges that could be justified under certain circumstances. If approved, the settlement fund would be split between Visa ($88.775 million) and Mastercard ($78.725 million), with class members in California, Illinois, Massachusetts, and Michigan potentially eligible for compensation tied to the period from October 24, 2007 through the date of preliminary approval. The notice also indicates that the claim process will likely require no unusual proof beyond completing a claim form, and updates will be handled through a dedicated settlement website once it goes live. The lawsuit was filed to challenge whether the card networks’ conduct improperly affected consumers who use ATMs operated by nonbank entities, and it matters because it targets the intersection of payment network policies and what consumers are charged at the point of cash withdrawal. A settlement like this is significant because it can reduce or offset consumer losses from fees that many people assume are unavoidable, while also setting a precedent for how antitrust and network-rule disputes are litigated in the payments industry. Broader implications include increased scrutiny of how card networks structure “access” and fee permissions for ATMs, and similar pressure on operators and regulators to ensure competition and transparency align with consumer protection and antitrust principles—especially in a financial environment governed by rules such as the Electronic Fund Transfer Act and broader network standards that shape ATM surcharge disclosures and cardholder rights.