Merchants who accepted Discover credit cards between 2007 and 2023 may be eligible to receive part of a proposed $1.225 billion settlement.
A proposed class action settlement has been reached in three related lawsuits pending in the US District Court for the Northern District of Illinois. The lawsuits allege that beginning in 2007, Discover misclassified certain Discover issued consumer credit cards as commercial credit cards, which in turn caused merchants and others to incur excessive interchange fees.
The parties have agreed to a settlement to avoid the expense and uncertainty associated with continued litigation. On July 30, 2025, the court approved the Motion for Preliminary Approval of Modified Class Action Settlement. The Settlement Class is comprised of all end merchants, merchant acquirers and payment intermediaries involved in processing or accepting a misclassified card transaction during the period from January 1, 2007, through December 31, 2023.
Starting September 11, 2025, notices were sent by mail and email to known class members. The claim period ends May 18, 2026.
Merchants who believe they are eligible to file a claim can do so using the online claims portal on the court authorized website. Alternatively, merchants who would like assistance submitting a claim can contact bryan@verisave.com for more information.
