Apple Pay fee lawsuit gains class-action status

A federal judge certified a class of U.S. payment card issuers in an antitrust lawsuit challenging fees Apple charges banks and credit unions when their cards are used through Apple Pay.

U.S. District Judge Jeffrey S. White of the Northern District of California issued the order Sept. 23, 2026, allowing the litigation to proceed on behalf of U.S. entities that issued cards enabled for Apple Pay and paid Apple fees on transactions involving those cards. The ruling does not determine whether Apple violated antitrust law.

The case, Affinity Credit Union v Apple Inc., was filed in 2022 by Affinity Credit Union and later joined by GreenState Credit Union and Consumers Credit Union. The plaintiffs allege Apple unlawfully monopolized the market for tap-and-pay mobile wallets on iOS devices by restricting competing wallets' access to the iPhone's near-field communication, or NFC, capabilities.

Issuers challenge Apple Pay fees

At issue are fees that differ from the interchange fees that merchants and their payments providers have challenged in other litigation and regulatory battles.

According to the lawsuit, Apple charges U.S. card issuers 15 basis points, or 0.15 percent, on credit card transactions made through Apple Pay and 0.5 cents on debit transactions. The plaintiffs contend comparable Android-based mobile wallets do not impose transaction fees on issuers. They allege Apple's restrictions on competing iOS wallets allow the company to impose fees that would not exist in a more competitive market.

The plaintiffs have estimated the charges cost banks and credit unions at least $1 billion annually. They are seeking damages as well as injunctive relief aimed at changing Apple's policies. Apple has disputed the allegations and opposed certification of the class.

“We are pleased with the ruling and look forward to next steps of litigation,” Steve Berman, co-founder and managing partner of plaintiffs' law firm Hagens Berman, said following the Sept. 23 decision.

Another front in payments fee disputes

The lawsuit presents a different variation on long-running disputes over the costs and rules surrounding card payments. Merchants have repeatedly challenged interchange fees and card-network rules, arguing that Visa and Mastercard practices restrict competition and increase acceptance costs. Here, however, financial institutions that ordinarily receive interchange are challenging a fee they themselves pay when cardholders use a third-party digital wallet.

The dispute also reaches beyond the amount Apple charges. The plaintiffs contend Apple's control over NFC access prevented competing tap-and-pay wallets from gaining a foothold on iPhones. Similar concerns have surfaced in government scrutiny of Apple's payments practices. In its antitrust case against Apple, the U.S. Department of Justice has alleged the company used restrictions on digital wallets and NFC access to protect Apple Pay while collecting fees from issuing banks.

With class certification, the case can now move forward on behalf of a much broader group of card issuers rather than only the three credit unions that brought the suit.

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