The Discover Card merchant settlement is one of the largest payment processing class action settlements in U.S. history — with a fund of up to $1.225 billion. If your business accepted Discover cards between 2007 and 2023, you may be owed money. The deadline to file is May 18, 2026, and no proof of purchase is required.
⚡ Quick Facts
- Settlement Fund: $540 million – $1.225 billion
- Filing Deadline: May 18, 2026
- Who Qualifies: Merchants who accepted Discover cards, 2007–2023
- Proof Required: No
- Estimated Payout: Varies based on transaction volume
What Is the Discover Card Merchant Settlement?
Discover Financial Services agreed to pay between $540 million and $1.225 billion to settle a class action lawsuit alleging that the company misclassified merchant interchange fees over a 16-year period. The lawsuit claims that Discover charged merchants incorrect — and often higher — interchange rates by misclassifying certain transactions into fee tiers that did not accurately reflect the merchant's actual business category.
Interchange fees are the fees a merchant pays every time a customer swipes a credit or debit card. Even small differences in rate classifications, applied across billions of transactions, can result in millions of dollars in overcharges. For many small and mid-sized businesses, these overcharges went completely unnoticed — until now.
The settlement covers merchants in all 50 states and does not require you to have saved any receipts or transaction records. Self-attestation of your merchant status during the qualifying period is sufficient to file a claim.
Who Is Eligible to File a Claim?
You may be eligible if your business meets all of the following criteria:
- You are or were a merchant in the United States
- You accepted Discover credit or debit card payments at any point between January 1, 2007, and December 31, 2023
- You paid interchange fees on those transactions
How Much Can You Receive?
Payouts from the Discover merchant settlement are calculated on a pro-rata basis — meaning your share of the fund depends on how much in Discover interchange fees you paid relative to all other valid claimants.
For small businesses, expect payments in the $50–$500 range. Mid-sized businesses with substantial Discover transaction history could see payouts of several thousand dollars.
How to File Your Claim
Filing is straightforward. You do not need a lawyer and the process takes about 10 minutes. Visit the official settlement website, provide your business information, attest to your eligibility (no receipts required), and submit before May 18, 2026.
Do not wait until the last minute. Settlement claim portals frequently experience high traffic in the final days before a deadline.
Key Takeaways
- The Discover Card merchant settlement is worth up to $1.225 billion
- Any U.S. merchant who accepted Discover cards between 2007 and 2023 may qualify
- No proof required — self-attestation is sufficient
- The deadline is May 18, 2026
- Payout amounts vary by transaction volume but even small businesses can receive meaningful payments
