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 Disclosures

This communication is provided by T.K. Sheth Law LLC d/b/a The Law Shed for informational purposes regarding the Discover Card Merchant Class Action Settlement.This is an advertisement for legal services. Tanvi K. Sheth is the attorney responsible for the content of this page.

No Obligation to Use a Third-Party Filer. Class members and program participants are not required to retain counsel and may file claims directly with the Settlement Administrator at no cost. Free assistance is available from court-appointed Class Counsel and the Settlement Administrator at www.DiscoverMerchantSettlement.com.
Firm Identification. T.K. Sheth Law LLC d/b/a The Law Shed is an Illinois-licensed law firm. All services described herein are overseen by Tanvi K. Sheth, Principal Attorney.
Scope & Jurisdiction. T.K. Sheth Law LLC d/b/a The Law Shed is licensed to practice law in Illinois. Our practice is limited to Illinois law, federal law, and matters before federal tribunals where the firm is admitted. For matters requiring practice in other state jurisdictions, the firm associates with locally licensed counsel as required.
No Specialist Certification. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. Attorneys at the firm are not certified as specialists in any particular field of law.
No Guarantee of Outcome. While the firm will use reasonable efforts to pursue any claim it agrees to file, it cannot and does not guarantee any specific outcome, eligibility determination, payment timing, or recovery amount. Eligibility and payment amounts are determined solely by the Settlement Administrator and the Court. Prior results do not guarantee a similar outcome.
Fee Disclosure. Representation in this matter is on a 30% contingency fee basis. No attorney fee is owed if there is no recovery. Complete fee terms are set forth in the written Engagement Agreement.
No Attorney-Client Relationship Without Written Engagement. No attorney-client relationship is created by viewing this page, by submitting an intake form, or by communicating with the firm. An attorney-client relationship is formed only if the firm signs and accepts a written Engagement Agreement. The firm treats prospective-client information in accordance with applicable professional-conduct rules, but attorney-client privilege may not attach unless and until an attorney-client relationship is formed.
Time Limits. Settlement deadlines and statutes of limitations may severely restrict the time available to file a claim or pursue a legal right. Delay may result in loss of rights. Refer to the official Settlement website for governing dates.
Choice of Attorney. The selection of an attorney is an important decision that should not be based solely on advertising. You are encouraged to consult independent counsel of your choice with respect to any aspect of representation.
Privacy. The firm does not sell your information or share it with third parties for marketing purposes. In the ordinary course of providing legal services and operating its practice, the firm may disclose information to service providers and vendors (such as document management, intake, scheduling, communications, payment, and information-technology providers), to settlement administrators and courts as required to pursue your claim, to the firm's agents and professional advisors retained in connection with your matter, and to legal or regulatory authorities as required by law.

Third-Party Sharing Disclaimer

Third parties may share this informational attorney advertisement, but no third party is authorized to alter it, guarantee eligibility or payment, provide legal advice, or state that The Law Shed is affiliated with the Court, the defendants, Class Counsel, or the Settlement Administrator. Unless expressly disclosed in writing, third parties sharing this information do not receive compensation from The Law Shed for recommending legal services.

Responsible Attorney: Tanvi K. Sheth, Principal Attorney Office/Mailing Address: 332 S. Michigan Avenue, Suite 900, Chicago, IL 60604 Office: 312-219-2447 | Cell: 847-529-8279 | Email: hi@thelawshed.com | Web:www.thelawshed.com