$1.2B Discover credit card merchant interchange fee class action settlement

Varies
Max Payout
May 18, 2026
Filing Deadline
Yes
Proof Required?

Discover has agreed to pay $1.225 billion to settle a class action lawsuit alleging the credit card company misclassified card transactions, causing merchants to pay excessive interchange fees.

The case, CAPP Inc., et al. v. Discover Bank et al. (Case No. 1:23-CV-4676), was filed in the U.S. District Court for the Northern District of Illinois. If your business processed Discover cards that were incorrectly classified as commercial cards between January 1, 2007, and December 31, 2023, you may be eligible for a minimum payment of $10.

Who Is Eligible?

You may be eligible to file a claim if you:

  • You are a merchant, merchant acquirer, or payment intermediary (not individual consumers)
  • You were involved in processing or accepting a misclassified Discover card transaction
  • The transactions occurred between January 1, 2007, and December 31, 2023

How Much Can You Get?

All eligible class members receive a minimum of $10. Actual payments vary based on overpaid interchange fees. If total base payments exceed $50 million, amounts reduce proportionally. If totals fall below $540 million, payments increase proportionally.

How to File Your Claim

Filing your claim is quick and easy:

  • Visit the official claim portal at discovermerchantsettlement.com
  • Submit documentation under penalty of perjury confirming eligibility and overpayment amounts
  • Proof of purchase documentation is required
  • Claims must be submitted by May 18, 2026

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Frequently Asked Questions

What is the Discover credit card merchant settlement about?

The settlement resolves claims that Discover misclassified certain credit cards as commercial cards instead of consumer cards, causing merchants to pay higher interchange fees than they should have.

How much can merchants receive from the Discover settlement?

The total settlement fund is up to $1.225 billion. Individual merchant payouts will depend on transaction volume and the number of claims filed, with specific amounts to be determined.

When is the deadline to file a Discover merchant settlement claim?

The filing deadline has not yet been announced. Settlement details and claim procedures are still being finalized by the court.

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