Mastercard controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile8 entries
2026
Visa and Mastercard agree to $167.5 million class-action settlement over ATM fees
Settlement
Visa and Mastercard agreed to pay a total of $167.5 million to settle the class-action lawsuit Burke v. Visa Inc., et al. The plaintiffs alleged the payment networks violated federal and state antitrust laws by prohibiting independent ATM operators from lowering withdrawal fees and forcing cardholders to pay higher ATM access fees, which the suit called a "price fixing scheme across all ATMs." Consumers charged unreimbursed non-bank ATM fees between Oct. 24, 2007 and Aug. 14, 2026 may file claims by Feb. 10, 2027, with the final approval hearing scheduled for Feb. 17, 2027.
Visa and Mastercard have agreed to pay a total of $167.5 million (approximately $88.8 million from Visa and $78.7 million from Mastercard) to settle the class-action lawsuit Burke v. Visa Inc., et al., in which plaintiffs alleged the payment networks violated federal and state antitrust laws by prohibiting independent ATM operators from lowering withdrawal fees and forcing cardholders to pay higher ATM access fees, which the suit called a 'price fixing scheme across all ATMs.' Consumers charged unreimbursed non-bank ATM fees between Oct. 24, 2007 and Aug. 14, 2026 may file claims by Feb. 10, 2027, with the final approval hearing scheduled for Feb. 17, 2027.
Company response
Refund or compensation — Visa
The two networks have agreed to pay $167.5 million in total, approximately $88.8 million from Visa and $78.7 million from Mastercard.
Refund or compensation — Mastercard
The two networks have agreed to pay $167.5 million in total, approximately $88.8 million from Visa and $78.7 million from Mastercard.
Source excerpt
The result, the suit claimed , amounted to a "price fixing scheme across all ATMs."
Plaintiffs in Burke v. Visa Inc., et al., alleged that the payment networks violated federal and state antitrust laws by forcing cardholders to pay higher ATM access fees than they otherwise would have.
The two networks have agreed to pay $167.5 million in total, approximately $88.8 million from Visa and $78.7 million from Mastercard.
2022
UK regulator fines Mastercard and four other companies over prepaid-card cartel
Fine or penalty
The UK Payment Systems Regulator fined Mastercard and four other companies over cartel behaviour in the prepaid-card market. The article says the companies admitted breaking the law and settled with the regulator; Mastercard was fined £31.6 million.
Company response
Apology — Mastercard
we apologise that the actions of two former employees resulted in the standards expected of us not being met in this instance
Remediation — Mastercard
We have taken this issue very seriously and have put further controls and training in place to ensure it cannot occur again
Source excerpt
During the investigation, all five parties admitted to breaking the law and settled with the PSR.
Mastercard got the heftiest punishment and will have to pay £31.6 million, out of a £33 million total.
The UK's Payment Systems Regulator (PSR) has fined Mastercard and four other companies for "cartel behaviour" in the pre-paid credit card market by agreeing not to poach each others' customers on cards offered by local authorities.
2021
Mastercard agrees to pay provisional competition-law fine
Fine or penalty
The UK Payment Systems Regulator said Mastercard and other card providers had agreed not to compete for local-authority contracts. The findings remained provisional; Mastercard admitted involvement and agreed to pay a fine if the regulator later decided the law was broken.
Source excerpt
The Payment Systems Regulator claims for six years, the firms agreed not to poach clients or compete for bids.
Published 31 March 2021
The findings are still provisional but Mastercard, Allpay and PFS have all admitted involvement and agreed to pay fines if in due course the regulator decides the law was broken.
2020
Loyal Bank sues Mastercard over terminated license
Lawsuit filed
Loyal Bank filed a lawsuit against Mastercard International in federal court, alleging that Mastercard improperly terminated its debit-card license after the bank was indicted for money laundering. The filing characterizes Mastercard's termination of the license as improper. These are allegations asserted in the lawsuit and have not been established as findings. The dispute concerns the termination of the bank's debit-card license following the indictment.
Loyal Bank sued Mastercard International in federal court, alleging that Mastercard improperly terminated its debit-card license when the bank was indicted for money laundering. The allegations are claims made in the lawsuit.
Company response
Clarification — Mastercard
Mastercard spokesman Seth Eisen responded that the company has just seen the filing and is reviewing it.
Source excerpt
claiming that the Purchase company improperly canceled a debit card license when the bank was indicted for money laundering.
Loyal Bank Limited, based in Saint Vincent and the Grenadines, sued Mastercard International Inc. on March 11 in federal court in White Plains.
2019
Desjardins says breach may affect 1.8 million more credit-card holders
Issue disclosure
Desjardins disclosed that personal information belonging to about 1.8 million credit-card holders who were not members may have been compromised in the breach. The company said the information was not stolen or found with third parties, and that payment-card data and credentials were not compromised.
Company response
Remediation — Desjardins
As a result of the latest developments, Desjardins said Tuesday it has decided to extend its identity protection program to all its members and clients.
Source excerpt
About 1.8-million holders of credit cards who are not Desjardins members may have had their personal information compromised, chief executive officer Guy Cormier said Tuesday.
privacy breach at Mouvement Desjardins now extends to Mastercard and Visa credit cards.
The rogue employee at the centre of the leak — who has since been fired — had access to banking details such as loans and savings, the CEO said on a conference call with reporters.
2005
Merchant interchange-fee class action
Merchants and trade associations sued Mastercard and Visa over alleged interchange-fee price fixing and restrictions on merchant steering. A proposed settlement received judicial approval in 2019, although some merchants opted out or challenged aspects of the agreement.
1998
U.S. antitrust case over bank exclusivity rules
The U.S. Department of Justice challenged Mastercard rules that restricted issuing banks from doing business with competing networks such as American Express and Discover. The government prevailed in 2001, and the result survived appeal; related private litigation also produced a settlement with American Express.
1996
Merchant debit and credit fee litigation
Merchants and retailers alleged that Mastercard and Visa used network rules and pricing practices that increased debit and credit-card acceptance costs. Related litigation led to a multibillion-dollar settlement in 2003 and continued to influence disputes over interchange fees.