Discover Merchant Settlement 2026: Deadline Passed, Can You Still File?
Talk to Our TeamLast Updated: 14 June 2026
Merchants who accepted Discover cards between 2007 and 2023 were part of a $1.225 billion class action settlement. The filing deadline was May 18, 2026. On May 20, 2026, the court granted final approval of the settlement. Claims are now being processed by the Settlement Administrator.
What Is the Discover Settlement?
Discover misclassified certain consumer credit cards as commercial cards for approximately 16 years. This caused merchants, payment intermediaries, and merchant acquirers to pay higher commercial interchange rates instead of the lower consumer card rates they should have been charged.
Three related lawsuits were consolidated: CAPP, Inc. v. Discover Financial Services, Lemmo’s Pizzeria LLC v. Discover Financial Services, and Support Animal Holdings LLC v. Discover Financial Services, all pending in the U.S. District Court for the Northern District of Illinois. Federal regulators, including the FDIC and the Federal Reserve, found merchants were overcharged more than $1 billion and took separate enforcement action against Discover.
Discover Settlement Key Facts
Settlement Amount: $1.225 billion total
Minimum Payout: $540 million guaranteed to class members | $10 minimum per approved class member
Filing Deadline: May 18, 2026 (now passed)
Final Approval: Granted May 20, 2026 by the U.S. District Court, Northern District of Illinois
Current Status: Claims are being processed. Payment allocation notices are expected in late 2026. Payments are expected to be issued in late 2026 to early 2027, approximately 240 days after final approval.
Court: U.S. District Court for the Northern District of Illinois | Case No. 1:23-CV-4676
Who Qualifies for the Discover Settlement?
The Settlement Class covers all End Merchants, Merchant Acquirers, and Payment Intermediaries involved in processing or accepting a Misclassified Card Transaction between January 1, 2007 and December 31, 2023. This includes:
- Businesses that accepted Discover-issued credit cards directly as payment for goods or services
- Business entities that had a formal agreement with Discover to facilitate Discover credit card transactions
- Businesses that processed Discover credit card transactions on behalf of other merchants
This includes businesses that used third-party payment processors or intermediaries for Discover transactions.
What Happens Now: For Merchants Who Filed a Claim
Watch for Deficiency Notices
The Settlement Administrator is now reviewing all submitted claims. In the coming weeks, claimants with incomplete or unclear submissions will receive a Claim Deficiency Notice. If you receive one, you must respond immediately. Failure to address a deficiency may result in your claim being denied.
You may also receive a separate Proof of Authority request. This must also be responded to promptly.
Claim Determination Notices
Once your claim is validated, you will receive a Claim Determination Notice with your estimated allocated payment amount. You have the right to challenge this allocation with supporting documentation if you believe it is incorrect.
Payment allocation determination notices are expected to be sent in late 2026. Payments will be issued either by mailed check or ACH transfer to a U.S. bank account, based on the option you selected when filing.
How to Check Your Claim or Update Your Information
Visit discovermerchantsettlement.com, log in using the credentials you created when filing, and use the My Claims feature to review your status or update your payment details. If you filed by mail and did not create an online account, use your email address and select “Forgot My Password” when logging in.
For direct support, contact the Settlement Administrator:
- Phone: 1-888-655-3176 (Mon–Fri, 9 AM–8 PM EST)
- Email: info@DiscoverMerchantSettlement.com
Professional Assistance with Deficiency Responses
If you received a deficiency notice or a Claim Determination Notice and are unsure how to respond, our team can help. We have handled merchant settlement documentation through the full filing process and understand what the Administrator is looking for. We work on a contingency basis, you pay nothing unless funds are recovered for you.
Did Not File by the Deadline?
The court-approved deadline to file claims was May 18, 2026. Late claims may still be submitted directly at discovermerchantsettlement.com, but the court cannot guarantee that late claims will be considered.
If you did not file before May 18, 2026, contact us to review your situation. We can help you assess whether a late submission makes sense and assist with the filing if you choose to proceed.
Missing the deadline significantly reduces your chances of recovery but it does not always eliminate them.
Get Help with Your Discover Settlement Claim
Our team assisted merchants through the full Discover settlement filing process. We are now helping clients respond to deficiency notices, review Claim Determination Notices, and pursue late filings where applicable.
We also continue to track the larger Visa/Mastercard interchange fee settlement, which may represent a significant additional recovery opportunity for businesses that accepted those cards.
Free consultation available. We will review where your claim stands and explain your options at no cost.
Contact us today to discuss your situation or fill out the form below to get started.
Important Note: Class members need not sign up for a third-party service to participate in any monetary relief. No-cost assistance is available from the claims administrator and class counsel during the claims-filing period. For information visit www.discovermerchantsettlement.com