Retailers Object to $200 Billion Visa-Mastercard Swipe Fee Settlement
Retail groups are opposing a proposed $200 billion antitrust settlement between Visa and Mastercard, preferring to take the case to trial.Summary
Retail groups are reportedly opposing a proposed $200 billion antitrust settlement between Visa and Mastercard. The settlement, stemming from a long-running case involving interchange fees, was the subject of a federal court hearing on April 27. Representatives from major retailers, including Walmart, told U.S. District Court Judge Brian Cogan that they oppose the deal. Attorney Debra Greenberger, representing the National Retail Federation and Retail Industry Leaders Association, argued that merchants would rather risk losing at trial than accept the settlement terms. Visa and Mastercard announced the proposed settlement in November, which would lower interchange fees by 0.1 percentage points for five years and allow merchants to choose whether to accept certain types of cards. The settlement is projected to save merchants upwards of $200 billion over eight years, but has attracted opposition from both large and small merchants. Judge Cogan did not rule on the matter but indicated he would issue a written ruling in the future. Additionally, PYMNTS noted another interchange fee battle in Illinois, where banking groups and the Office of the Comptroller of the Currency are objecting to a state law that would block the collection of interchange on portions of transactions tied to taxes and tips.
(Source：Pymnts)