$1.2 Billion Discover Card Merchant Settlement
Discover Card Merchant Class Action Settlement | $1.2B Recovery for Eligible Merchants
The Discover Card Merchant Class Action Settlement is a newly court-approved $1.2B class action recovery opportunity for merchants who accepted or processed Discover credit cards between January 1, 2007 through December 31, 2023. As of July 30, 2025, the Court granted preliminary approval of the modified settlement agreement. The official notice program began September 11, 2025.
Here are the case details.
Discover Card Merchant Class Action Settlement addresses the issue that Discover Financial Services, DFS Services LLC, and Discover Bank (together, "Discover") misclassified consumer credit card transactions as commercial cards, leading merchants and others to incur higher interchange fees from 2007 to 2023.
According to the plaintiffs’ class action complaint, “Credit card accounts classified as ‘commercial’ draw the highest fee rate (i.e., 2.4% on the purchase amount) in the industry while basic consumer accounts draw the lowest fee rate (i.e., 1.4% on the purchase amount)". This misclassification, plaintiffs claim, led to “interchange fees of upwards of hundreds of millions of dollars” beyond what they should have been charged.
Who’s eligible for the Discover Card Merchant Class Action Settlement?
All End Merchants, Merchant Acquirers, and Payment Intermediaries involved in processing or accepting a misclassified card transaction during the period of January 1, 2007 through December 31, 2023.
But what is a “misclassified card transaction”?
A Discover credit card transaction which, at the time of processing and according to the records of Discover, was classified by Discover Bank as a “commercial” card product but should have been classified under Discover Bank’s card classification guidelines as “rewards”, “premium”, or “premium plus".
What is the total fund?
$1,225,311,279
However, there is a "minimum class payout" of $540 million. (The discrepancy between total and minimum is because some class members may resolve their claims with Discover on a separate, individual basis.)
Claim notices started going out to eligible class members in September.
When is the claim filing deadline?
May 18, 2026
Can I opt out?
Yes, you must opt out by March 25, 2026.
What happens next?
If you're eligible, you should be notified directly by the settlement administrator. You may also file a claim proactively with supporting documentation to maximize your recovery. If you want to file a claim, CCC can help you take advantage of this settlement with minimal effort on your end.
Work with us to file a claim. How our process works.
1. Register online
Complete the registration form.
Deadline: May 18, 2026
2. Sign the required documents
You will be asked to sign the Agency Agreement and Addendum, which allow CCC to investigate your claim on your behalf.
3. Claim data is prepared
The claims administrator will provide claim data based on your Tax ID number. Once this is available, CCC will review and validate the information with you, and estimate the value of your claim.
4. Receive an offer
Following confirmation of your claim data, CCC will present a cash offer to monetise your claim. This is entirely optional, with no obligation, no risk, and no clawback.
5. Get paid
If you choose to accept the offer, payment is issued within a few weeks. Payment method may vary depending on claim size.
About Certificate Clearing Corporation (CCC)
Founded in 1993, CCC is the leader in the class action settlement recovery industry. We help millions of claimants recover funds in thousands of class actions. Our expert staff can help you understand the history of this litigation, its complexities, and your options for accelerated recovery options. We know there is no one-size-fits-all solution, and our team is ready to customize a recovery that best suits your business.
About BB Merchant Services (BBMS)
BB Merchant Services is an independent consultancy focused on reducing payment processing costs through detailed benchmarking, commercial analysis, and renegotiation support. Working alongside CCC, BB Merchant Services supports merchants throughout the claims process while also providing a broader review of their existing payment arrangements. This ensures that, beyond any recovery, businesses have clear visibility into their current cost structures and whether their terms remain aligned with fair market rates, helping finance teams take a more informed and controlled approach to payment costs going forward.
Disclaimer: Claim forms are now available in the Discover Card Merchant Class Action Settlement. Class members need not sign up for a third-party service to participate in any monetary relief. No-cost assistance is available from the Class Administrator and Class Counsel during the claims-filing period. See more information at the Court-approved website: discovermerchantsettlement.com.