$1.09 billion
Jan 1, 2007 – Dec 31, 2023
October 22, 2025
Pending
A settlement has been reached in a lawsuit alleging that Discover misclassified certain consumer credit cards as commercial cards, leading to higher interchange fees for merchants. The settlement aims to resolve the claims and provide compensation to eligible businesses.
Who is Included in the Settlement?
The “Settlement Class” includes all End Merchants, Merchant Acquirers, and Payment Intermediaries involved in processing or accepting a Misclassified Card Transaction between January 1, 2007, and December 31, 2023.
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.
When a cardholder makes a purchase with a credit or debit card, there is a fee attributable to those transactions, which is usually around 1% to 2% of the purchase price. Interchange fees typically account for the greatest part of the fees paid by merchants for accepting Discover cards. Discover set interchange fee rates for different kinds of transactions and publish them on their websites, usually twice a year.
Businesses that accepted Discover credit or debit card payments between January 1, 2007, and December 31, 2023, may be eligible. This includes End Merchants, Merchant Acquirers, and Payment Intermediaries involved in processing Misclassified Card Transactions.
The amount paid from the settlement fund will be based on your actual or estimated interchange fees attributable to Discover card transactions (between you and your customers) from January 1, 2007 through December 31, 2023. The amount of money each Authorized Claimant will receive from the settlement fund depends on the money available to pay all claims, the total dollar value of all valid claims filed, the cost of class administration and notice, applicable taxes on the settlement fund and any other related tax expenses, attorneys’ fees and expenses, and money awards to the Rule 23(b)(3) Class Plaintiffs for their representation of merchants in MDL 1720.
We blend expertise with meticulous attention to detail to secure the maximum possible recovery for your business. Our process is streamlined and robust, requiring minimal effort on your part, and we operate on a success fee basis, ensuring that our interests are perfectly aligned with our clients’ interests.
We leverage industry insights to assess your interchange fees accurately, even if your data is incomplete.
Our approach includes all your entities – locations, subsidiaries, and acquisitions – to maximize your claim.
We minimize requests to you and your staff, handling all the complexity of the claim on your behalf.
We only earn a fee if we successfully recover funds for you. No recovery means no fee.
Sagemont Services is here to assist you throughout the process, ensuring you meet deadlines and maximize your compensation. This is an opportunity to reclaim funds lost due to Discover’s practices, and we are committed to making the process smooth, fast, and simple for you. The settlement was granted preliminary approval on October 22, 2024, with a proposed claim filing deadline of October 22, 2025.
For more information about the official settlement, please visit the link below.