US: Retailers may want to think twice about opting out of credit card settlement

As more and more retailers are opting out of a proposed $7.2 billion settlement offered by credit card giants Visa and MasterCard over swipe fees, reports say the stores who prefer to fight the fees on their own are facing significant risks in doing so. Merchants who have already opted out include Starbucks, CVS Pharmacy and Target Corp. after being given a deadline of May 28 to opt out of the deal. While reports suggest that the companies that have opted out are likely to continue to fight the swipe fees on their own through their own lawsuits, aimed at grabbing an even larger settlement, reports say that it is a risky move as those that have opted out will have no access to the $7.2 billion settlement. According to one of the lead lawyers for the class, Craig Wildfang of Robins, Kaplan, Miller & Ciresi, the retailers that have opted out “have greatly underestimated the risk…and probably overestimated their ability” to ultimately come out with a better deal than the one already offered by the credit card conglomerates. Visa and MasterCard have requested that the judge rule that swipe fees do not violate antitrust law. If that is granted, merchants may be barred from initiating another case against the companies.