Visa, Mastercard to settle lawsuit over credit card fees

Friday 21 September 2018 10:43 CET | News

Visa and Mastercard have announced intentions to pay USD 6.2 billion to settle part of a long-running lawsuit brought by merchants over fees on credit card transactions.

According to Seattle Times, a group of 19 merchants and trade groups alleged Visa and Mastercard conspired to fix fees that are charged to stores for handling credit card payments. However, as part of the September 18 settlement, Visa said it will pay USD 4.1 billion and Mastercard USD 900 million.

But the lawsuit still has to solve a dispute over the rules Visa and Mastercard impose to accept their cards, and the merchants who chose not to participate in the settlement.

The original dispute against Visa and Mastercard dates from 2005, when the companies were owned by the banks and not public. Back then merchants and trade groups alleged that the card schemes used their dominant market position to impose fees that were artificially too high, resulting in billions of dollars paid in excess swipe fees.

Meanwhile, in 2012, Visa, Mastercard and a group of merchants reached a financial settlement, but some retailers and consumer groups objected and that settlement was ultimately thrown out by a federal appeals court.

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Keywords: Visa, MasterCard, credit cards, transaction fees, payments , merchants, lawsuit, US
Countries: World