$1.2 Billion Discover Merchant Card Fee Settlement

Unsplash | Published: August 13, 2025

Claim Form Deadline: May 18, 2026

Status: Claim Form Available on September 11, 2025

Proof required: Claim form and supporting documentation may be required after the portal opens in Sept. 2025.

What's the $1.2 Billion Discover Card Settlement?

This settlement resolves claims that Discover's misclassification of some card transactions led merchants, acquirers, and payment intermediaries to pay higher-than-necessary fees.

Discover allegedly coded some consumer credit cards as commercial cards, which have higher interchange fees. Merchants who accepted these payments may have paid more in fees than they should have.

What is the Total Settlement Amount?

The totals settlement amount is $1.225 billion, with a minimum of $540 million to be distributed to the class. The exact payout depends on transaction volume/fees and the number of claims filed.

How Do I Qualify for a Payout?

Anyone who accepted or processed Discover credit card payments (as an End Merchant, Merchant Acquirer, or Payment Intermediary) between Jan 1, 2007 and Dec 31, 2023, including via intermediaries like PayPal, Stripe, Square, or Shopify.

How Do I Find Class Action Settlements?

Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:

How Much Can I Get Paid?

Payout depends on how much you were overcharged and the number of claims filed; high-volume processors may receive larger amounts. All class members share at least $540 million; total fund is $1.225 billion.

Legal Background for the Discover Merchant Card Fee Settlement

The $1.225 billion Discover Merchant Card Fee Settlement received preliminary approval from the U.S. District Court for the Northern District of Illinois on July 30, 2025. The case is being heard under Case No. 1:23-CV-4676 and related cases.

Important Dates

The court's approval sets the following key dates:

• Claims Portal Opens: September 11, 2025
• Claim Deadline: May 18, 2026
• Class Period: January 1, 2007 - December 31, 2023

During this time, eligible class members—End Merchants, Merchant Acquirers, and Payment Intermediaries—can submit claim forms and required documentation through the official settlement portal. Final approval will be determined after the claims process closes.

What is Next for the Discover Class Action?

FDIC Enforcement Actions
• The Federal Deposit Insurance Corporation (FDIC) issued three orders against Discover Bank, Greenwood, Delaware.
• Discover must provide at least $1.225 billion in restitution to affected merchants.
• The FDIC also imposed a $150 million civil money penalty for the misclassification of card transactions.

Federal Reserve Actions
• The Federal Reserve Board issued a parallel enforcement order against Discover Financial Services.

• The Fed imposed a $100 million civil money penalty and required corrective governance measures.

Key Finding: Regulators concluded that merchants were overcharged more than $1 billion between 2007 and 2023 due to Discover’s misclassification of certain consumer credit card transactions as commercial transactions.

How Do I File a Claim?

File a claim online once the portal opens (opens Sept. 11, 2025); deadline is May 18, 2026. Visit the official settlement site for instructions and sign up for updates here on OpenClassActions.com, linked below.

Is Proof Required to File a Claim?

Yes, a claim form and supporting documentation may be required after the portal opens in September 2025.

Submit Claim

Sources

• Claim Form Website: Official Settlement

Filing Class Action Settlement Claims

Please note that your claim form will be rejected if you submit a settlement claim for payout with any fraudulent information. By providing this information and your sworn statement of its veracity, you agree to do so under the penalty of perjury. You would also be harming others that actually qualify for the class action settlement. If you are not sure whether or not you qualify for this class action settlement, visit the class action administrator's website. OpenClassActions.com is a consumer advocacy and class action news site, and is not a class action administrator or a law firm. OpenClassActions is a participant in the Amazon affiliate advertising program and this post may contain affiliate links, which means we may earn a commission or fees if you make a purchase via those links.

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