VISA and Mastercard in Record Settlement

Visa and Mastercard make $7.25bn fees dispute settlement

VISA and Mastercard in record settlement

Visa and Mastercard and major US banks have agreed to a $7.25bn (£4.65bn) settlement to retailers over card fees.

The seven-year case over firms colluding to fix the fees that merchants pay to process credit and debit-card transactions.

The settlement is estimated to be the biggest of its kind in US history.

It involves a $6bn payment to merchants and an agreement to reduce swipe fees for eight months, valued at $1.2bn.

An additional $525 million has been set aside to pay to the stores which sued individually, including grocery chains Kroger and Safeway and the Rite Aid pharmacy chain.

Previous settlements

The settlement involves credit card giants Visa and Mastercard, as well as major issuing US banks including JPMorgan Chase, Bank of America and Citibank.

Visa and Mastercard have already paid a combined $3bn to settle a lawsuit over their “honour all cards” policies, which tied acceptance of credit to debit cards.

The US Department of Justice also brought and settled a civil suit against the two firms in 2010 over policies that prevented stores from offering their customers cheaper forms of payments.

However, that settlement left in place credit card company rules that stop stores from charging customers more when they use certain payment cards.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: