MasterCard, Visa to pay $336 mn in currency suit

NEW YORK: MasterCard and Visa agreed to pay a total of $336m to settle a class-action lawsuit alleging the credit card firms shortchanged US consumers in foreign currency transactions, a regulatory filing showed.

MasterCard International said in a filing with the Securities and Exchange Commission that its portion of the settlement was $72.5m and will be used to pay claims by eligible cardholders and other expenses. The agreement must be approved by a federal court in New York, the filing said.

The law firm of Berger and Montague, which represents plaintiffs, said in a separate statement that the case stems from allegations that the companies added surcharges to credit and debit card transactions denominated in a foreign currency or with a foreign merchant.

“The plaintiffs claimed that the defendants violated federal and state antitrust laws, disclosure laws and other legal requirements,” the law firm said. Details of the settlement were to be released when filed with the court.