Swipe fee settlement draws opposition
Many retail organizations throughout the country are voicing their opinions regarding the swipe fee agreement reached by card giants Visa and MasterCard.
The most recent organization to oppose the settlement is the Retail Industry Leaders Association (RILA), stating that the deal would hurt both businesses and consumers. The RILA also said it would drive down payment innovation, as Visa and MasterCard would be free from being charged with any legal claims regarding interchange practices, which are aspects that led to the creation of the agreement.
"Retailers are concerned that in addition to limiting their future legal options, the proposed settlement preserves the Visa/MasterCard duopoly and constrains emerging innovations that could bring meaningful competition to the marketplace," said RILA president Sandy Kennedy in a statement.
According to Forbes, large retailers are also against the settlement, including Target and Wal-Mart. MasterCard and Visa agreed to pay more than $6 million after they were accused of participating in anti-competitive practices as well as payment processing price fixing. However, many businesses are opposed to the deal. Wal-Mart stated that the settlement will continue to force high charges on retailers and customers and therefore will not change the payment landscape, reports the source.
