The Retail Industry Leaders Association (RILA) has backed out of a pact with Visa, MasterCard and other major credit card providers. The class-action settlement for $7.25 billion was designed to make up for some of the interchange or swipe fees these companies charge the merchants represented by RILA, but the group feels the settlement will do little to stop these fees from rising. They are now seeking an alternative solution.
RILA represents some of the most established retail groups in the world, like Walmart, Best Buy and Target. The group originally filed the petition for a settlement in the hopes of collecting some of the money lost in interchange fees. These fees are issued to the retailers and legally cannot be put onto the customers. The merchants feel that the fees have gotten out of hand.
Deborah White, executive vice president for the Arlington branch of RILA, says that "RILA and the overwhelming majority of our members agree that the proposed class action settlement is a bad deal for retailers." She continued by saying "The proposed settlement undermines merchants' legal rights forever and fails to restrain the continued growth of swipe fees increases."
With the case still pending, members of RILA are continuing to fight for a better solution to the problem that will work for the long term. They are not accepting the settlement any longer in the hopes that something will happen to better protect them from rising costs in the future.