Discover Card Merchant Class Action Settlement
Discover Card Merchant Class Action Settlement
Defendants Discover Financial Services, DFS Services LLC, and Discover Bank agreed to pay between $540 million and $1.225 billion plus interest to resolve allegations that they misclassified certain consumer credit cards as commercial cards, causing merchants and payment processors to be charged excessive interchange fees from 2007 through 2023. Eligible End Merchants, Merchant Acquirers, and Payment Intermediaries can file a claim for a share of the fund.
Settlement fund
$540M-$1.225B
Plus interest, paid by Discover
Base payment minimum
$10
Subject to $50M aggregate cap
Claim deadline
May 18, 2026
Postmarked or submitted online
This settlement is closed
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Do you qualify?
The Settlement Class includes businesses that meet ALL of the following:
- Your business accepted or processed Discover credit card transactions at any time between January 1, 2007 and December 31, 2023
- Your business is an End Merchant, Merchant Acquirer, or Payment Intermediary that processed or accepted a Misclassified Card Transaction (a Discover consumer credit card classified as "commercial" in Discover's records)
- No proof of specific transactions is required to file. The Settlement Administrator calculates MID Amounts from Discover's own records
- Excluded: Certain persons and entities listed on Exhibit A to the Settlement Agreement, and any class member who timely opted out by March 25, 2026.
Not sure what type of Settlement Class Member you are, or need a replacement Claimant ID and PIN? Contact the Settlement Administrator at info@DiscoverMerchantSettlement.com or call 1-888-655-3176.
What happened
Plaintiffs CAPP, Inc.; Young Peoples Day Camps Inc.; Prayus Group LLC; Lemmo's Pizzeria, LLC; and Lenny's Casita, LLC filed three related class action lawsuits in the U.S. District Court for the Northern District of Illinois, alleging that beginning in 2007, Discover misclassified certain Discover-issued consumer credit cards (specifically "rewards," "premium," and "premium plus" cards) as commercial credit cards in its records. Because interchange fee rates can depend on card type, the alleged misclassification caused End Merchants, Merchant Acquirers, and Payment Intermediaries to be charged excessive interchange fees on those transactions over a 17-year period.
Discover denies the claims and denies any wrongdoing or liability. The Court has not determined that Discover did anything wrong. The parties agreed to settle to avoid the expense, uncertainty, and risks of continued litigation. Under the settlement, Discover will pay at least $540 million and up to $1.225 billion plus interest to affected End Merchants, Merchant Acquirers, and Payment Intermediaries, and will separately pay court-approved attorneys' fees, litigation expenses, class representative service awards, and all settlement administration costs.
How to file a claim
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1
Confirm you are a Settlement Class Member
If your business received a notice by mail or email, Discover's records indicate you may qualify. If you did not receive a notice but accepted or processed Discover credit cards between 2007 and 2023, you can still file by registering with your Taxpayer Identification Number (TIN). Notices are being mailed on a rolling basis through April 30, 2026.
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2
Identify your Settlement Class Member type
Most class members are Indirect End Merchants. Your business may also be a Direct End Merchant (Managed Active, Unmanaged Active, or Inactive), a Merchant Acquirer, or a Payment Intermediary. Requirements differ by type. Merchant Acquirers and Payment Intermediaries also had to submit additional data (Merchant Acquirer Information was due Nov 12, 2025; Payment Intermediary Information was due Feb 25, 2026). A business can be more than one type and may need to file more than one claim.
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3
File online or by mail by May 18, 2026
Fastest option: register and submit your claim at discovermerchantsettlement.com/Register using the Claimant ID and PIN from your notice (or your TIN if you did not receive a notice). To file by mail, send your completed Claim Form to: Discover Card Merchant Class Action Settlement Administrator, c/o Epiq Class Action, P.O. Box 2497, Portland, OR 97208-2497. Claims must be submitted or postmarked by May 18, 2026.
For general information, FAQs, notice documents, and the full Settlement Agreement, visit the official settlement website: discovermerchantsettlement.com.
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4
Receive your payment
After claims are validated, Epiq will issue a Claim Determination Notice with your estimated Allocated MID Amount. You may challenge the allocation with supporting documentation. Once the settlement is finally approved and all processing is complete, payments are sent by mailed check or, at your election, by ACH transfer to a U.S. bank account. Eligible class members receive at least $10, subject to a $50 million aggregate base-payment cap.
Key dates
- Mar 25, 2026 Opt-out and objection deadline Passed
- May 18, 2026 Claim filing deadline Upcoming
- May 20, 2026 Final approval hearing (9:30 a.m. CT, Chicago, IL) Upcoming
- Benefits issued after final approval and any appeals TBD
The Final Approval Hearing will be held before the Honorable Steven C. Seeger in Courtroom 2319 of the United States District Court for the Northern District of Illinois, 219 South Dearborn Street, Chicago, IL 60604. The hearing may be moved or held remotely or telephonically. Check discovermerchantsettlement.com for updates.
Where the money is going
Attorneys' fees, litigation expenses, service awards, and administration costs are paid by Discover in addition to class member payments and do not reduce what class members receive. Uncashed or undeliverable checks will go to a non-profit educational or public benefit organization as a cy pres recipient, subject to Court approval.
All amounts listed above are pending and subject to final court approval at the fairness hearing.
Common questions
How much money will I receive?
Payments are calculated from the total estimated interchange fee overcharge for each Discover merchant identifier (MID) associated with your business, how those amounts are allocated among any Merchant Acquirer, Payment Intermediaries, and End Merchant for that MID, and the total aggregate settlement payout. Every eligible class member is guaranteed a minimum of $10, subject to a $50 million aggregate cap on base payments. Epiq will send a Claim Determination Notice with your specific Allocated MID Amount before payments are issued, and you will have the chance to challenge the allocation.
Do I need proof of my Discover transactions to file?
No. You do not need receipts, merchant statements, or transaction records to file your claim. Epiq calculates MID Amounts from Discover's own data. If your MIDs list in the claimant portal looks incomplete or incorrect, you can upload monthly merchant statements or other supporting documents through the "My Claims" page to request corrections.
What if I did not receive a notice?
You do not need a Claimant ID and PIN to file. Go to discovermerchantsettlement.com, click Submit a Claim, and follow the link to "register without a Claimant ID and PIN." You will file using your Taxpayer Identification Number. If you want a copy of your notice resent, call the Settlement Administrator at 1-888-655-3176 or email info@DiscoverMerchantSettlement.com.
Does staying in the class affect my right to sue Discover later?
Yes. If you do not exclude yourself and the settlement is approved, you will release the claims in these lawsuits and claims related to the Misclassified Card Transactions against Discover and its affiliates. The deadline to opt out or object was March 25, 2026 and has passed. If you took no action by that date, you are now bound by the release and cannot separately sue Discover for these claims.
When will payments be sent out?
The Final Approval Hearing is scheduled for May 20, 2026 at 9:30 a.m. Central Time in Chicago. Payments will be issued after the settlement is approved, becomes final, and all allocation processing is complete, which includes time for class members to review and challenge their Claim Determination Notices. Appeals may extend the timeline. Check discovermerchantsettlement.com for updates.
Dapeer Law, P.A.
Consumer class action attorneys based in South Florida. We track settlements so you don’t have to.
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A note on our role
Dapeer Law, P.A. did not act as lead counsel or otherwise participate in litigating the above class action and provides this information to remind class members of the deadline to submit a claim for a share of the settlement.
This page is for informational purposes only and does not constitute legal advice. Dapeer Law, P.A. is not the administrator of this settlement and is not affiliated with Discover Financial Services, DFS Services LLC, Discover Bank, or Epiq Class Action & Claims Solutions, Inc. (the Court-appointed Settlement Administrator). For official information, visit discovermerchantsettlement.com or call 1-888-655-3176. Settlement Class Counsel are Roger N. Heller of Lieff Cabraser Heimann & Bernstein LLP, Catherine Pratsinakis of Dilworth Paxson LLP, and Taras Kick of The Kick Law Firm, APC. Class Representatives are CAPP, Inc.; Young Peoples Day Camps Inc.; Prayus Group LLC; Lemmo's Pizzeria, LLC; and Lenny's Casita, LLC. This website is attorney advertising. Past results do not guarantee future outcomes.
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