Discover Card Merchant Class Action Settlement
T.K. Sheth Law LLC d/b/a The Law Shed — Illinois-licensed, virtual law firm acting as a third‑party claim filer
Ongoing Live Client Intake
About the Program
DISCOVER MERCHANT SETTLEMENT - $540 Million – $1.2 Billion Class Action Settlement
Case: CAPP, Inc. v. Discover Financial Services, Case No. 1:23-cv-04676 (N.D. Ill.)
Overview
If you accepted or processed Discover credit cards between 2007 and 2023, you could be eligible to get a cash payment from a class action settlement.
The lawsuits allege that Discover misclassified certain consumer credit cards as commercial credit cards, causing merchants and others to pay higher interchange fees than they should have. According to the complaint, commercial cards carry fees around 2.4% per transaction while consumer cards carry fees around 1.4%—a difference of approximately 1% per transaction over 17 years.
Discover denies the allegations. The Court has not decided who is right.
Potential Recovery
Settlement Fund: $540 million – $1.225 billion (plus interest)
Minimum base payment: $10 per eligible claimant
Your payment is calculated based on the estimated interchange fee overcharge for each Discover merchant identifier (called a "MID") associated with your business, and how those charges were allocated among entities associated with the same MID.
Floor: If total payments fall below $540 million, payments increase proportionally.
Ceiling: If total payments exceed $1.225 billion, payments may be reduced proportionally.
Filing Deadline
May 18, 2026 – Last day to submit online or mail claim form.
March 25, 2026 - Opt-Out / Objection Deadline
Who Is Eligible?
If you accepted or processed Discover credit cards between January 1, 2007 and December 31, 2023, you could be eligible.
The Settlement Class includes three types of members:
End Merchant - An individual or business that accepted Discover cards from customers as payment for goods or services
Merchant Acquirer - A business that had an agreement with Discover to facilitate transactions as an "Acquirer"
Payment Intermediary - A business that processed Discover transactions on behalf of other businesses (e.g., Square, Stripe, PayPal)
Types of End Merchants:
Most End Merchants are Indirect End Merchants—merchants that accepted Discover cards through a third party like PayPal, Square, Stripe, Shopify, Cashapp, Venmo, eBay, Amazon or etc. Direct contracts with Discover are uncommon.
Indirect End Merchant - Accepted Discover through PayPal, Square, Stripe, Shopify, etc. (most common) - Must file claim by May 18, 2026
Inactive Direct - Had direct contract with Discover, no longer active - Must file claim by May 18, 2026
Unmanaged Active Direct - Direct contract, still processing, no relationship manager - Automatic payment—no claim required
Managed Active Direct - Direct contract with dedicated relationship manager - Provide payment info only
How Do I Know If I'm Affected?
If you used a payment facilitator (PayPal, Venmo, Square, Stripe, Shopify): You may not have known which cards your customers used. If you accepted credit cards through these services between 2007–2023, you may be eligible to file a claim.
If you received a notice: Records indicate you may be a Settlement Class Member.
If you did NOT receive a notice: You may still file a claim with basic business details (legal name, d/b/a, taxpayer ID). The Settlement Administrator may request additional information after your claim is submitted.
Client Intake Process
Step 1: Call or Complete Online Intake Form
Step 2: Complete Engagement Agreement & Designated Agent Agreement (Individuals)
Step 3: Our office will review the submissions and respond back within 72 Hours accepting/denying the engagement. For any questions, please contact the office at 312-219-2447 or Attorney Sheth at 847-529-8279 (cell).
Attorney Advertising
CLIENT ACKNOWLEDGES AND AGREES THAT:
Class members are not required to use a third-party filer.Free help is available from Class Counsel and the Class Administrator. Additional information is available on the Court-approved Settlement website at www.DiscoverMerchantSettlement.com.T.K. Sheth Law LLC DBA The Law Shed is an Illinois-licensed law firm, and all services provided under this Agreement are overseen by Tanvi K. Sheth, Principal Attorney.Scope of Services & Jurisdiction: The Law Shed's role as a third-party filer is limited to preparing and submitting eligible claims under the Discover Card Merchant Class Action Settlement. We do not offer or provide legal services in jurisdictions where we are not admitted to practice, and nothing in this Agreement is intended to authorize the practice of law outside Illinois.No Guarantee of Outcome: While The Law Shed will use reasonable efforts to pursue your claim, we do not guarantee any specific outcome or recovery amount.Notwithstanding these acknowledgments, Client still desires to retain Attorney to assist with preparation, submission, and management of Client's Claim.
Client understands that Client has the right to consult with an independent attorney of Client's choice with respect to any and every aspect of this Attorney Representation Agreement.© 2026 T.K. Sheth Law LLC d/b/a The Law Shed. This is an advertisement for legal services.
Office Line: 312-219-2447 | Email: hi@thelawshed.com