Visa, Mastercard, Major Banks Facing New Litigation over 'Anticompetitive' Fees
Legal Battle: Visa, Mastercard, and Big Banks Sued Over Transaction Fees
Published: October 6, 2026
Author: Corrado Rizzi
Case Reference: § 1:26-cv-06087 (Filed September 30, 2026)
A San Diego-based pizzeria, The Pizza Standard LLC, has initiated a proposed class action lawsuit claiming that a conspiracy between major credit card networks and some of the largest financial institutions in the U.S. has artificially driven up the transaction fees paid by merchants.
The Defendants
The litigation targets a group of industry giants alleged to have collaborated to maintain anticompetitive market restraints:
| Network Entities | Major Banking Defendants | Other Entities |
|---|---|---|
| Visa International Service Association | Bank of America, NA | Paymentech, LLC |
| Mastercard Incorporated | Capital One Bank USA, N.A. | |
| Mastercard International Incorporated | Wells Fargo & Company, Chase Bank, Citibank |
Core Allegations: The "Monopoly Rent"
The 134-page complaint argues that the defendants have utilized the Sherman Antitrust Act as a benchmark for their violations. The suit claims that the credit card transaction fees—which are essentially non-negotiable—act as a systemic drain on American commerce.
"The effectively non-negotiable credit card transaction fees imposed by the defendants amount to 'a deadweight toll on virtually every credit card purchase in America,' totaling hundreds of billions in 'monopoly rents' at rates that 'no competitive market would produce.'"
The Mechanism of Control
The lawsuit describes a "web of anticompetitive rules" designed to insulate the defendants from market pressure. This system ensures that merchants cannot avoid high costs.
Key Restraints Identified:
- The "Honor All Cards" Requirement: Merchants accepting any card from a network must accept all cards from that network, regardless of the fee. This removes the incentive for banks to lower fees to attract merchants.
- Anti-Steering Rules: Merchants are prohibited from directing customers toward more affordable payment methods (e.g., through specific surcharges for certain cards).
The Financial Impact
The scale of the alleged scheme is massive. The lawsuit asserts that merchants are currently paying:
Beyond the interchange fees paid to banks, the suit claims Visa and Mastercard have leveraged this lack of competition to inflate their own network fees (fixed and per-transaction costs), creating what the filing calls a "supracompetitive tax."
The "Settlement Gap"
A critical point of this litigation is the timing. While a previous massive settlement occurred, it left a significant window of unpaid damages.
Pre-January 24, 2019:Covered by a $5 billion class action settlement.- Post-January 25, 2019: The period covered by the current lawsuit.
The complaint notes that while "equitable relief" (injunctive changes) may be coming, merchants have not received a single cent in compensation for the fees paid since January 2019.
Current Lawsuit Objectives:
- Recover damages for fees paid from Jan 25, 2019, onwards.
- End the "anticompetitive effects" of the defendants' conduct.
- Provide remedy for millions of American merchants.
Class Definition
The lawsuit seeks to represent: All individuals, businesses, and entities within the United States that accepted Visa-branded and/or Mastercard-branded credit cards from January 25, 2019, until the anticompetitive practices cease.
Related Legal Spotlights:
- Video Game Addiction: Potential actions regarding Fortnite or Roblox addiction.
- Kratom 7-OH: Lawsuits for injuries, overdoses, or heart attacks related to 7-OH products.