Sagemont Services: Guiding Merchants Through the Discover Card Interchange Fee Class Action Settlement

DISCOVER CARD MERCHANT CLASS ACTION SETTLEMENT

Key Settlement Information

Settlement Fund

Settlement Fund

$1.2 billion

Settlement Period

Settlement Period

2007 –  2023

Claim Filing Deadline

Claim Filing Deadline

May 18, 2026

Current Status

Current Status

Open

What Merchants Need to Know About the Discover Settlement

Discover Card Settlement Lawsuit Summary

If your business accepted or processed Discover-issued credit cards between January 1, 2007, and December 31, 2023, you could be eligible for compensation from a $1.2 billion settlement fund.

This settlement stems from allegations that Discover misclassified consumer credit cards as commercial cards, causing merchants to pay unlawfully high interchange fees. While Discover denies wrongdoing, they agreed to settle to avoid further litigation.

Discover Card Settlement Lawsuit Summary

Why This Matters

  • What happened: Discover allegedly classified consumer credit cards as “commercial,” leading to elevated interchange fees for nearly 17 years.
  • The impact: Regulators determined that merchants were overcharged by more than $1 billion. Enforcement actions and fines were imposed on Discover.
  • Settlement terms: A settlement of approximately $1.2 billion has been preliminarily approved. Notice and Claims are Now Open.

Who Is Eligible

  • Merchants who accepted Discover cards directly
  • Merchant acquirers contracting with Discover
  • Payment intermediaries processing Discover transactions

With over 11 million Merchant IDs (MIDs) affected, it’s essential to verify if your business qualifies. Sagemont Services will handle this for you, ensuring your claim is accurate and submitted on time.

FAQ's

Frequently Asked Questions

What is the settlement about?

The lawsuit alleges Discover misclassified millions of consumer credit cards as commercial accounts between 2007 and 2023, resulting in higher interchange fees charged to merchants.

How much is the settlement worth?

The settlement fund totals approximately $1.2 billion, allocated for merchants harmed by these misclassifications.

What documentation will be required?

You may need to supply transaction records showing interchange fees paid, merchant category codes, transaction volumes, and total sales.

Can I exclude myself or object?

Yes. You may opt out if you do not wish to participate or object if you disagree with the settlement terms. Instructions and deadlines will be provided in the court-authorized notice.

What is the impact of the FDIC and Federal Reserve action?

Regulators concluded Discover misclassified consumer cards for 17 years, overcharging merchants by more than $1 billion. Discover was fined, and the settlement does not absolve other regulatory actions.

Who can file a claim?

Eligible participants include end merchants, merchant acquirers, and payment intermediaries who processed Discover transactions between January 1, 2007, and December 31, 2023.

How do I submit a claim?

Fill out the information on the form above to let Sagemont handle your claim submission

Detailed instructions, including documents needed and filing dates, will be provided once the court grants final approval. Notice and claims forms were issued on or around September 11, 2025.

Do I have to pay to file a claim?

No. You are not required to pay anything if you choose to file your claim directly through the official Discover Merchant Settlement website. However, many businesses find the process time-consuming and complex. If you prefer to have Sagemont Services handle the filing on your behalf, we work on a contingency-fee basis—meaning we only retain a portion of the recovery if and when your claim is successful.

When will payments be made?

No timeline has been finalized, but payments generally follow after the claims review process once final approval is granted. Distributions could take several months after filing closes.

Where can I find more info?

Visit the official Discover Merchant Settlement website or consult court-authorized updates. You can refer to ongoing legal updates on reputable information sites tracking claims and deadlines.

OUR EXPERTISE

How We Excel

Expert Analysis

Expert Analysis

We leverage industry insights to assess your interchange fees accurately, even if your data is incomplete.

Comprehensive Recovery

Comprehensive Recovery

Our approach includes all your entities – locations, subsidiaries, and acquisitions – to maximize your claim.

Effortless Process

Effortless Process

We minimize requests to you and your staff, handling all the complexity of the claim on your behalf.

No Upfront Cost

No Upfront Cost

We only earn a fee if we successfully recover funds for you. No recovery means no fee.

Maximize Your Recovery with Sagemont Services

The Process

Maximize Your Recovery with Sagemont Services

Sagemont Services is here to guide you every step of the way—helping you meet deadlines, avoid mistakes, and secure the maximum compensation available. This settlement represents a valuable opportunity to recover funds lost due to Discover’s practices, and our team is committed to making the process seamless, efficient, and stress-free.

The settlement received preliminary approval on October 22, 2024, with a proposed claim filing deadline of May 18, 2026. Don’t leave money on the table—let us handle the details for you.

How It Works:

  1. Complete Intake Form – Fill out our quick and easy online form.
  2. Provide Basic Info – Share your Merchant ID Number, Employer Identification Number (EIN), and other business details.
  3. We File Your Claim – Sagemont prepares and submits your claim, handling all communication with the Settlement Administrator.
  4. Receive Your Recovery – Once approved, funds are sent directly to you, minus our success-based fee.
Get Started

Sagemont Services is not affiliated with the Class Administrator or Class Counsel from the Discover Merchant Settlement, but we provide expert services to help you navigate and claim your settlement funds.

For more information about the official settlement, please visit the link below.

Discover Merchant Settlement