U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS | CASE NO. 1:23-CV-4676
If you accepted or processed Discover credit cards between 2007 and 2023, you could be eligible to receive a payment from a class action settlement.
Allegedly, between 2007 and 2023, Discover “misclassified” Discover-issued consumer credit cards as commercial cards. This action resulted in merchants paying a commercial (business) interchange/processing fee on Discover card transactions rather than the lower consumer card interchange.
Discover has not admitted to wrongdoing, but has agreed to a settlement with the plaintiffs to avoid the expense of litigation.
According to the Discover Card Merchant Class Action Settlement official website, the court must now rule on the settlement agreement. The issuance of the official Settlement Notice and Claim Forms will not happen until the court approves the settlement agreement reached by both parties.
Things to consider doing now in anticipation of an approved settlement:
- Begin gathering your merchant statements from January 1, 2007, through December 31, 2023.
- Identify the Discover transactions received during the stated period.
- Notify your Legal office, other appropriate central offices, and all departments that accepted cards during the stated period that this legal action is underway. Share this article with them.
Based on what occurred with previous card brand settlements, I expect two things to begin happening soon:
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- Third parties will reach out to offer to help your business file a claim, for a fee.
- Once the court approves the settlement, departments (merchants) will begin receiving claim forms. These are typically sent via U.S. mail.
- Determine how claims forms sent to departments are to be handled, what departments should do with them, and which area is responsible for overseeing claim submission to ensure your business receives all the funds due from the settlement.
- Share this news with other entities associated with your business that may have accepted Discover cards during this period (Alumni, Foundation, healthcare entities, doctor practice plans, etc.).
- Monitor the settlement official website for updates, bookmark this article on the CampusGuard website for updates, or reach out to CampusGuard Treasury Advisory Services or your CampusGuard CRM to learn more.
Other Discover news:
On May 18, 2025, Capital One Financial Corporation completed its acquisition of Discover Financial Services. The acquisition received approval from the Federal Reserve, the Office of the Comptroller of the Currency, the Delaware State Bank Commission, and the shareholders of Capital One and Discover.
Currently, no changes to products or services have been announced. Here are a few articles about the acquisition.
