Discover Merchant Class Action Settlement

U.S. merchants who accepted/processed Discover cards (2007–2023) can claim from a $1.225B settlement for misclassified fees causing excessive interchange costs. No proof needed initially

Settlement Overview

What is the Discover Merchant Settlement? This $1.225 billion class action settlement resolves consolidated lawsuits (CAPP, Inc. v. Discover Financial Services, Case No. 1:23-cv-04676; Lemmo's Pizzeria, LLC v. Discover Financial Services, Case No. 1:23-cv-14250; and Support Animal Holdings, LLC v. Discover Financial Services, Case No. 1:23-cv-15297) in the U.S. District Court for the Northern District of Illinois. The suits allege that Discover Financial Services, DFS Services LLC, and Discover Bank misclassified certain consumer credit cards (e.g., rewards or premium cards) as commercial cards starting in 2007, forcing merchants, acquirers, and intermediaries to pay higher interchange fees than required. Discover denies all wrongdoing and liability, and the court has made no ruling on the merits. The settlement avoids further litigation costs and risks, providing cash payments to eligible class members while releasing Discover from related claims. At least $540 million is guaranteed for distribution, with the full fund available based on claims. Who Qualifies? The Settlement Class includes all U.S. End Merchants, Merchant Acquirers, and Payment Intermediaries that processed or accepted a "Misclassified Card Transaction" from January 1, 2007, to December 31, 2023. Excludes certain entities listed in the Settlement Agreement (e.g., defendants and affiliates). No Non-Monetary Relief Specified: The focus is on monetary compensation; no additional policy changes mentioned. For full legal details, review the official Long Form Notice and Settlement Agreement on the settlement website. Preliminary approval was granted on July 30, 2025; claims opened September 11, 2025.

Who Is Eligible?

You qualify if you are a U.S.-based: - End Merchant: Business or individual that accepted Discover cards directly for goods/services (2007–2023). - Merchant Acquirer: Entity with a Discover agreement to facilitate transactions. - Payment Intermediary: Business processing Discover transactions for others (not an End Merchant or Acquirer). And you handled a "Misclassified Card Transaction" (consumer card wrongly tagged as commercial per Discover's records) during January 1, 2007–December 31, 2023. No minimum transaction volume; automatic for some active direct merchants.

How to File a Claim

1. Visit the official settlement website at https://www.discovermerchantsettlement.com (claims open since September 11, 2025). 2. Use the online claims portal to submit basic business info (e.g., Merchant ID if known, contact details); no initial documents required. 3. If you received a mailed notice, use your unique ID and PIN for faster processing. Some automatic claimants may need to provide extra info later. 4. Submit by May 18, 2026 (electronic or postmarked deadline). Approved payments issued by check or electronic transfer 60-90 days after final approval.

File Your Claim Now

Documentation Requirements

No proof or documentation is required to submit an initial claim—provide basic business details only. The administrator calculates your share using Discover's records of overcharges (e.g., via Merchant ID). If requested (rare), submit a W-9 form for tax purposes. Without additional info when asked, claims may be reduced or denied. All valid claims get at least the minimum; higher with verified volume.

Payout Details

Payments are pro rata based on your estimated overcharged interchange fees, total valid claims, and fund size (after deductions for up to 33% attorneys' fees, costs, and administration). Unmanaged active direct end merchants get automatic payments. Total distribution: at least $540M, up to $1.225B + interest. Issued tax-reportable (1099 for $600+).

Key Information

Payout Range

$10 - Varies

Claim Deadline

May 18, 2026

153 days left

Total Settlement Fund

$1.225 billion

Administrator

Epiq Class Action & Claims Solutions, Inc.

Important Dates

Opt-Out: March 25, 2026

Final Approval: May 20, 2026

Submit Claim Now

By clicking "Submit Claim Now", you will be directed to the official settlement website to file your claim directly with the settlement administrator.

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