Retailers file appeal for credit card swipe fee settlement
It's been an eight-year battle for many retailers, but there may be some good news on the horizon for the group of merchants who are contesting a $7 billion dollar settlement between themselves and credit card giants Visa and MasterCard.
According to Inside Counsel, the potential antitrust agreement was put into place after Visa and MasterCard, along with several banks, were accused of working together to fix credit and debit swipe fees, which are expenses that retailers are charged whenever customers use their plastic cards to make payments. These fees totaled more than $30 billion each year, costing both businesses and consumers large amounts of money. If the settlement goes into effect, Visa and MasterCard would pay retailers $6 billion and would reduce their swipe fees for about eight months, coming to about $1.2 billion in savings.
However, many merchants are against this agreement, arguing that it is not enough and that it gives the card companies too much leeway, as they would be exempt from ever being sued for similar practices again, the source notes. The retailers have filed an appeal against a judge's preliminary approval of the settlement, which could prevent it from being enacted.
"It should prove very significant to the court that the majority of the plaintiffs in this case have repudiated the settlement, and that includes half a dozen national trade associations representing thousands of merchants," stated Mallory Duncan of the National Retail Federation.
