$1.225 Billion Discover Merchant Card Fee Settlement
By Steve Levine
Unsplash | Published: September 16, 2025
Claim Form Deadline: May 18, 2026
Payout: Pending
Proof required: Business Info
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:• Claim Deadline: May 18, 2026
• Qualifying 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 in May 2026.
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 if you qualify before the deadline of May 18, 2026.How to File a Claim
To file your claim online, you can use either the Notice you received with a Claimant ID and PIN or file without a Notice if you never got one. The deadline to submit is May 18, 2026.If you have a Claimant ID and PIN
Go to DiscoverMerchantSettlement.com/Register, enter your Claimant ID and PIN from your emailed or mailed Notice, and follow the prompts to complete your claim. You can add additional Claimant IDs later in your portal.What if I Did Not Receive a Discover Settlement Notice?
You can still file. Visit DiscoverMerchantSettlement.com/Register and click the option for those who did not receive a Claimant ID and PIN. You will be asked to provide your business information to create a claim.Information you may need to file a claim?
Legal business name and any DBA, Taxpayer Identification Number (SSN, EIN, or ITIN), contact email and phone, and basic details to confirm you accepted or processed Discover credit cards between January 1, 2007 and December 31, 2023. You may be asked for a W-9 or additional documentation if requested by the Administrator.Payment options
Choose to receive payment by paper check or ACH deposit to a U.S. bank account. You can update payment details later via your claimant portal.Need help or want to check your MIDs?
You can review known Discover MIDs after registering by selecting “Submit a Claim” in your portal. For assistance, contact the Settlement Administrator.Is Proof Required to File a Claim?
Most claimants only need to provide accurate business details when filing. In some cases, the Administrator may request a W-9 or additional documentation to verify eligibility. Keep your records handy in case follow-up is needed.Submit Claim
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:Official Notice
Sources
• Official Settlement Website• Court and Settlement Documents
• Long Form Notice PDF
• FDIC Press Release on Discover Bank Enforcement
• Federal Reserve Enforcement Order
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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File Claim| Settlement Summary | |
| Status | Preliminary Approval |
|---|---|
| Total Settlement Amount | $1.225 Billion |
| Claim Deadline | May 18, 2026 |
| Exclude/Object By | March 25, 2026 |
| Fairness Hearing | April 22, 2026 |
| Benefits | Cash payments |
| Settlement Notice | Discover Settlement Notice |