Discover Card - Misclassified transactions class action Settlement
What is the Discover Card merchant settlement about?
This lawsuit alleges that Discover misclassified certain consumer credit cards as commercial credit cards, causing merchants and payment processors to pay higher interchange fees than they should have. The alleged misclassification affected Discover credit card transactions processed between January 1, 2007 and December 31, 2023.
Discover denies all wrongdoing, and the Court has not ruled on the claims. Both sides agreed to settle to avoid the expense and uncertainty of litigation.
How much is the Discover Card merchant settlement payout?
If you're eligible and file a claim, you may receive a cash payment depending on the volume and type of Discover transactions your business processed over the settlement period.
The final payout amount will vary based on:
- The number of valid claims submitted
- The number of misclassified Discover transactions associated with you
- The settlement allocation formula approved by the Court
Payments will be issued after the Court grants final approval and any appeals are resolved.
Am I eligible to file a claim?
You may be eligible if:
- You accepted or processed Discover credit cards anytime between 2007 and 2023,
- And you were involved in at least one Misclassified Card Transaction, meaning Discover labeled a consumer credit card (such as a rewards or premium card) as a commercial card.
Eligible groups include:
- End merchants
- Merchant acquirers
- Payment intermediaries
Excluded entities are listed on Exhibit A of the Settlement Agreement.
Is the Discover Card merchant settlement legit?
Yes. The Discover Merchant Settlement is legitimate, and the official settlement website has been authorized by the Court as the accurate source for updates, claim filing, and case information.
Consumers and businesses can use the site to:
- Submit a settlement claim
- Check their Discover MID status
- Review the Notice and settlement documents
- Learn more about the Discover Card Merchant Settlement
- Contact the settlement administrator
The Court granted preliminary approval on July 30, 2025, and Notices have been issued on a rolling basis since September 11, 2025.
When’s the claim deadline?
You must submit a Discover Card Merchant settlement claim form online or by mail by:
- May 18, 2026
Other important deadlines:
- Exclusion Deadline: January 6, 2026
- Objection Deadline: January 6, 2026
- Final Approval Hearing: February 6, 2026 at 10:00 AM EST
Who qualifies for the Discover Card merchant settlement?
The Discover settlement covers:
All End Merchants, Merchant Acquirers, and Payment Intermediaries who processed or accepted a Discover credit card transaction misclassified as a commercial card between January 1, 2007 and December 31, 2023.
Businesses that accepted Discover payments during this 17-year period may be eligible for compensation.
How do I file a Discover Card merchant settlement claim form?
To submit a Discover Merchant settlement claim form online, head to the official settlement website and use the digital claims portal.
If filing online:
- Enter or verify your Discover Merchant ID(s)
- Complete the claim form with required details
- Submit before May 18, 2026
If filing by mail:
- Download and print the claim form
- Complete all sections accurately
- Mail the form so it is postmarked by May 18, 2026
If you do nothing, you will receive no payment and will give up your right to sue Discover about the claims covered by this settlement.
