Mastercard and Visa to pay class action lawsuit but Canadian cardholders won't see a dime

Do Canadian Mastercard and Visa cardholders get any money?

Canadian Mastercard and Visa cardholders are not part of the US-based class action settlement. Any money distributed from this settlement is only available to US citizens impacted by Mastercard and Visa's anti-competitive practices.

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Canadian Mastercard and Visa class action lawsuits

For Canadian cardholders, there have been separate class action lawsuits, such as the one settled in 2022. This lawsuit allowed small businesses in Canada to claim compensation for overpaid merchant fees due to anti-competitive practices by Mastercard and Visa. This settlement was specific to Canadian businesses and did not extend to individual cardholders.

What is a class action lawsuit?

These lawsuits allow one or more people to sue on behalf of a larger group with similar claims, making it easier to handle cases involving many people affected in the same way, especially in cases involving faulty products or environmental damage.

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How do class action lawsuits work?

In a class action lawsuit, the settlement money is divided after the lead plaintiffs and attorneys receive their shares first. The lead plaintiffs, who usually have the most significant injuries and damages, receive the largest portion. Attorneys typically take a percentage for their legal fees, which the court ensures is reasonable. The remaining settlement is then distributed among the other class members, with the amounts varying based on the severity of their injuries and the evidence supporting their claims.

What legal cases make the best class action lawsuits?

Typically, lawsuits involve situations in which many people are affected in the same way, such as faulty products, environmental issues or accidents.

In general, a legal case is a good candidate for a class action lawsuit if it meets the following four criteria:

1. The group is too large to sue individually
2. Everyone’s claims are similar
3. The main plaintiffs' claims are typical of the whole group
4. The representatives and lawyers are capable

What are the benefits of a class action lawsuit?

• More efficient for courts
• Helps small claims be heard
• Ensures fair distribution of any settlement
• Avoids different verdicts for similar cases

What are the disadvantages of a class action lawsuit?

• Individuals in the group can't speak directly in court
• Risk of poor representation
• Hard to manage large groups
• Can affect settlement chances

Bottom line

In the US, there are two other similar lawsuits still ongoing in the same court. One is from consumers who used non-bank ATMs, and the other is from businesses that own independent ATMs.

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