Why Merchants Are Receiving Unexpected Deposits: The $5.54B Payment Card Settlement
Key Takeaways
- Merchants are receiving unexpected deposits from the historic $5.54 billion Payment Card Interchange Fee Settlement.
- This settlement resolves litigation over Visa and Mastercard interchange fees and provides partial payments to eligible merchants.
- Payment amounts depend on transaction volume and the number of claims filed; some businesses may receive thousands.
- New Rule changes allow merchants to surcharge certain credit cards and encourage lower-cost payment methods starting in 2026.
Estimated reading time: 5 minutes
A mystery deposit hits your business bank account this month. You didn’t sell a high-ticket item today. It’s not a tax refund, and it’s certainly not a loan. For many U.S. merchants, this “unexpected windfall” is actually the first wave of a historic $5.54 billion distribution.
Payment Card Interchange Fee Settlement Deposits: What Merchants Need to Know
If a surprise ACH credit just landed in your business account, it may be tied to the Payment Card Interchange Fee Settlement. Across the country, merchants are reporting unexpected deposits labeled “Settlement Admin,” “Epiq,” or similar wording. This is not a loan. It is not a refund. It is the first wave of distributions from the historic $5.54 billion settlement resolving Visa and Mastercard interchange fee litigation.
Here is everything you need to know about the Payment Card Interchange Fee Settlement and why these funds are appearing now.
1. What is the $5.54 Billion Payment Card Settlement?
The Payment Card Interchange Fee Settlement (MDL No. 1720) is the largest private antitrust class action settlement in U.S. history. After 20 years of litigation, the court approved a plan to return billions of dollars to merchants overcharged on Visa and Mastercard interchange (“swipe”) fees.
Core Facts:
- The Eligible Period: Merchants who accepted Visa or Mastercard between January 1, 2004, and January 25, 2019.
- The Fund: A massive $5.54 billion cash pool.
- The 2026 Timeline: Following the court’s October 2025 order, initial partial distributions began in February 2026.
- Critical Verification: The only official, court-authorized website is www.paymentcardsettlement.com.
2. Why Am I Getting This Deposit Now?
If you see a deposit labeled with terms like “Settlement Admin,” “Epiq,” or “Interchange Settlement,” it is likely your initial partial payment. Many business owners are surprised because: The Deadline has Passed: The window to file a claim closed on February 4, 2025. If you filed back then (or had a third-party service file on your behalf), the court is now releasing the funds.
Rolling Basis: Payments are not applied to all accounts simultaneously. First partial payments, followed by additional distributions in waves throughout 2026, as claims are verified.
Long Memories: You may have filed your claim years ago and forgotten about it.
3. How Much Will My Business Receive?
There is no “flat fee.” Your payment is calculated based on: Your Actual Transaction Volume: The total dollar amount of Visa/Mastercard payments you processed during the 15-year class period. The Pro-Rata Share: How many other valid claims were filed? While some small businesses may see hundreds of dollars, larger retailers or high-volume businesses (such as restaurants or medical offices) may see deposits in the thousands or tens of thousands.
4. The “David vs. Goliath” Story: ScanMyPhotos
One reason this settlement exists is because of a small business called ScanMyPhotos. Founded in 1990, this photo digitization company became the lead plaintiff in the case. CEO Mitch Goldstone and the company’s co-founder both spent two decades fighting the major banks and card networks. National media outlets, including PetaPixel, dubbed it the “Erin Brockovich moment” for small businesses. Their persistence ensured that even the smallest “mom-and-pop” shops could claim their share.
5. Beyond the Cash: New “Surcharge” Rules in 2026
While the $5.54 billion is for past overcharges, the settlement has also triggered massive “injunctive” changes to how you run your business today.
As of 2025-2026, new rules may allow merchants more flexibility:
Surcharging Power: You can now apply a surcharge (typically capped at 3%) to certain high-cost credit cards to offset swipe fees. “Honor All Cards” Relaxation: Merchants have greater flexibility to steer customers toward lower-cost payment methods, such as debit cards or specific networks. Transparency: New card designs must clearly indicate “Premium” or “Commercial” status so you know the swipe cost before it occurs.
6. How to Protect Your Business from Scams
Because these payments are making headlines, scammers are active. A deposit arrives via ACH or check from the official administrator. Someone calls, claiming to charge a “processing fee” to release your funds.
You can verify your status at paymentcardsettlement.com. You receive an email asking for your bank password to “verify” the claim. There is no cost to receive your funds if you filed. Someone claims they can “re-open” your claim for a fee (the deadline has passed).
Frequently Asked Questions (FAQ)
I didn’t file a claim. Can I still get money? Unfortunately, the filing deadline was February 4, 2025. If you missed the deadline, you generally cannot participate in this $5.54 billion fund. However, you still benefit from the new, lower interchange fee caps being implemented throughout 2026.
Is this payment taxable? Generally, yes. Settlement payments may typically be treated as business income. You should consult with your CPA regarding how to categorize this deposit.
When will the “final” payment arrive? Current distributions in early 2026 are often partial. A final “top-off” payment may occur once all appeals and disputed claims are fully resolved.
[Updated February 14, 2026].
