What You Need to Know: The Discover Card Class Action & What It Means

Overview

Discover Card faces a major class-action settlement regarding card misclassification between 2007 and December 31, 2023. The company allegedly labeled consumer credit cards as commercial products, resulting in merchants paying inflated interchange fees.

Settlement Details

Fund Structure:

• Total settlement: $1.225 billion (plus interest)
• Minimum guaranteed payout: $540 million
• Individual minimum: $10 per eligible claimant
• Lawyers' fees and administrative costs deducted from fund

Eligible Participants:

• End merchants who accepted misclassified Discover cards
• Merchant acquirers with Discover agreements
• Payment intermediaries processing transactions

Critical Deadlines

• Claim filing deadline: May 18, 2026
• Opt-out deadline: March 25, 2026
• Fairness hearing: May 20, 2026
• Estimated payout timeline: ~240 days post-approval

Action Steps

Businesses should:

1. Determine if they processed Discover transactions (2007-2023)
2. Monitor for official settlement notices
3. Gather transaction documentation now
4. Decide whether to participate or opt out
5. File valid claims by the deadline
6. Consider legal consultation for complex claims

More information available at the official settlement website.

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