V · 10-Q · 2026Q1 · Full report

Interchange Multidistrict Litigation

VISA INC. · 2026-04-29 · Importance 58 · Surprise 42 · In source text

Visa recorded additional accruals of $894 million for the interchange multidistrict litigation for the six months ended March 31, 2026 and deposited $625 million into the U.S. litigation escrow account; the escrow balance was $665 million as of March 31, 2026 (restricted cash equivalents). The company reports that the accrual balance represents its best estimate for U.S. covered litigation but could be higher or lower and may materially vary based on litigation developments. Visa also reported payments for U.S. covered litigation during the period and that under the U.S. retrospective responsibility plan it recovers monetary liabilities via downward adjustments to certain class B conversion rates. The company states it is unable to estimate a potential loss or range of loss at trial if negotiated resolutions cannot be reached.

Key facts

• On April 21, 2026, Potayto-Potahto, LLC and two other merchants filed a class action complaint in the U.S. District Court for the Southern District of New York against Visa and Mastercard asserting violations of federal antitrust laws for merchants that have accepted Visa and/or Mastercard credit cards since January 25, 2019 and seeking damages from that date. source
• For the six months ended March 31, 2026, we recorded additional accruals of $894 million to address claims associated with the interchange multidistrict litigation. source
• For the six months ended March 31, 2026, we made deposits of $625 million into the U. S. litigation escrow account. source
• On April 21, 2026, three merchants that are members of the Damages Class filed a motion for partial summary judgment in MDL 1720 seeking a declaration that the forward-looking release in the Amended Settlement Agreement resolving the Damages Class claims is invalid and unenforceable under federal law. source
• On November 10, 2025, Visa and Mastercard entered into a superseding and amended settlement agreement to resolve the Injunctive Relief Class claims and the Injunctive Relief Class plaintiffs filed a motion for preliminary approval of the settlement. source
• Visa has reached settlements with a number of merchants representing approximately % of the Visa-branded payment card sales volume of merchants who opted out of the Amended Settlement Agreement; as a result, all actions scheduled for trial beginning in April 2026 in the Southern District of New York have been resolved. source
• As of March 31, 2026 the balance of the U.S. litigation escrow account was $665 million and is reflected as restricted cash equivalents in our consolidated balance sheets. source

Impact estimates