20 Years and Still Waiting: The Absurd Reality of the Payment Card Interchange Lawsuit

Twenty years.

That's how long the Payment Card Interchange saga has been unfolding, and for the 18.6 million U.S. eligible merchants, the waiting game is far from over. What started in 2005 as a fight against excessive Visa and Mastercard interchange fees, has become a masterclass in how the settlement process can drag on indefinitely. It's also a powerful lesson in why smart business owners shouldn’t wait around for a bureaucratic resolution.

The Timeline That Defies Logic‍

Let's put this in perspective. When this lawsuit was first filed in 2005:

• Facebook was limited to college students

• The iPhone didn't exist

• Netflix was still mailing DVDs

• YouTube had just launched

• George W. Bush was president

Two decades later, merchants are still waiting for their money.

The Latest Admission: "We Don't Know"

Here's the most telling part of this saga: even the settlement administrators – the people whose job it is to distribute the $5.5 billion – admit they don't actually know when payments will begin.

Current estimates suggest another year or more, but that’s guesswork. After 20 years of fighting, delays, extensions, and administrative hurdles, this timeline likely won’t hold.

The Predictable Pattern of Settlement Delays

These delays aren’t unique to the Payment Card Settlement. They’re following a well-established pattern that affects virtually every major class action settlement:

• Phase 1: Legal Victory ✓ Complete - Settlement reached in 2023

• Phase 2: Appeals and Challenges ✓ Multiple rounds completed

• Phase 3: Claims Processing ✓ Deadline extended, finally closed February 2025

• Phase 4: Administrative Limbo ← You are here

• Phase 5: Distribution Timeline: Unknown

The problem? Phase 4 can last years. Settlement administrators must verify claims, resolve disputes, calculate pro-rata distributions, and navigate countless administrative requirements. Each step introduces new potential delays.

The Business Cost of Waiting

While merchants wait for their settlement checks, real costs accumulate:

• Opportunity Cost: Money tied up in settlements can't be invested in growth, equipment, or expansion.

• Cash Flow Impact: Businesses planning around expected settlement funds face uncertainty.

• Inflation Erosion: The purchasing power of your settlement decreases with each month of delay. What $10,000 could buy for your business today won't be the same in 12-18 months.

• Competitive Disadvantage: While you wait, competitors with immediate capital are growing, expanding, and capturing market share.

Why Some Merchants Aren't Waiting

Many Payment Card Settlement claimants have chosen a different path. Instead of leaving their money in administrative limbo, they've partnered with litigation funders to:

• Access immediate cash flow for business operations.

• Invest in growth opportunities while competitors wait.

• Prepare for economic challenges like tariffs and supply chain issues.

• Take control of their financial timeline instead of leaving it to administrators.

The Benefits of Moving Forward Now

Immediate Capital: Turn your settlement claim into working capital within weeks, not years.

Risk Transfer: Litigation funding companies assume the risk of collection delays or issues.

Business Growth: Use immediate funding to expand, upgrade, or strengthen your market position.

Peace of Mind: Remove the uncertainty of settlement timing from your business planning.

Lessons from 20 Years of Waiting

The Payment Card Settlement offers valuable lessons for any business facing similar situations:

• Settlement timelines are consistently underestimated – expect delays beyond official projections

• Administrative processes are complex and unpredictable – even professionals can't provide reliable timelines

• Waiting has real business costs – opportunity costs compound over time

• Alternative solutions exist – litigation financing provides immediate access to settlement value

A Compelling Addition to Alternative Investment Strategies

Post-settlement/judgment litigation finance represents a maturing alternative investment opportunity that combines the structural familiarity of asset-based lending with the legal clarity of enforceable settlement/judgment awards. For institutional investors seeking to hedge credit exposure while accessing documented, predictable cash flows, this asset class offers compelling risk-adjusted returns with minimal correlation to traditional markets.

The growing sophistication of the litigation finance market, combined with increasing institutional participation, suggests that post-settlement/judgment funding will continue to evolve as a legitimate component of diversified credit portfolios. As yield-starved investors search for alternatives with more predictable returns and lower beta exposure, the legal enforceability inherent in post-settlement/judgment litigation finance provides a unique solution to persistent portfolio challenges.

For institutional allocators considering this alternative investment, the combination of shorter duration, legal enforceability, and uncorrelated returns makes post-settlement/judgment litigation finance a strategic addition to credit-focused portfolios seeking both diversification and yield enhancement.

Ready to explore how post-settlement/judgment litigation finance can enhance your credit portfolio? Contact Tower 3 Investments to learn more about accessing differentiated returns through legally enforceable receivables.

Roni Dersovitz is the founder of Tower 3 Investments, LLC a firm offering investment opportunities in Post-Settlement/Judgment Litigation Funding. Mr. Dersovitz has 14 years of experience as a practicing personal injury attorney and has managed portfolios of Receivables since 1998. To learn more about access to differentiated returns through litigation finance, visit www.Tower3Investments.com or contact us at info@Tower3Investments.com.