Retail Trade Group Opposes Swipe Fee Settlement
The opposition continues to grow to the $7.25 billion settlement on credit card interchange fees that Visa, MasterCard and other banks agreed to pay.
Yesterday, the National Retail Federation announced that it received approval from its board to go to court to attempt to block the settlement.
The NRF, the largest retail trade organization, believes the proposed settlement will not prevent interchange fees from increasing. In addition, the Federation is concerned the settlement would forbid any future legal challenges.
The nation’s two biggest retailers, Walmart and Target, have already been critical of the settlement.
The proposed agreement was reached in July and was the largest antitrust class-action settlement in history. MasterCard, Visa and major banks agreed to pay more than $6 billion to resolve accusations that they engaged in anticompetitive practices and price fixing in payment processing. In addition, credit card companies agreed to reduce swipe fees for eight months, an adjustment valued at $1.2 billion.
The settlement would allow retailers to charge higher prices to their customers for paying with credit cards. Before this settlement, the card companies prohibited retailers from adding this type of surcharge.