This post will evaluate the settlement’s damages provisions. You can find my first post providing background on the litigation here. The settlement provided that upon the court’s preliminary approval, the card networks would pay $6.05 billion, 2/3 from Visa and 1/3 from MasterCard into a settlement fund. Depending on how many merchants chose to opt out, however, the defendants retained the right to reduce the fund through take down payments of up to 25% of the total and to kill the deal if opt outs exceeded that amount. Opt outs exceeded that amount, but the defendants have not abandoned the settlement. In addition to the flat fee award, Visa and MasterCard agreed to cut their applicable interchange fees by 10 basis points for eight months. Rather than actually reducing the fees paid by merchants, however, Visa and MasterCard would withhold 10 basis points from collected fees that would otherwise have been paid to card issuers. This amount would then be contributed into the settlement fund within 60 days from the expiration of the eight-month period. This contribution would be non-refundable, regardless of opt outs.