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US: Visa, MC finally put swipe-fee case behind them

 |  December 13, 2013

A US district judge has approved of Visa and MasterCard’s $5.7 billion settlement offer to end a class action law suit against the credit card firms for swipe-fees, a move that puts an end to the major case with a settlement believe to be the largest antitrust settlement in US history.

US District Judge John Gleeson accepted the offer and, in his ruling, said that “for the first time, merchants will be empowered to expose hidden bank fees to their consumers.”

Visa and MasterCard are accused of running a longtime price-fixing scheme to manipulate interchange fees, which charge retailers for every swipe of the credit card.

The record-breaking settlement was first announced July 2012; the offer once topped $7.25 billion, but was reduced following thousands of retailers opting out of settlement funds. Those that dropped out include Target, Amazon.com and Wal-Mart Stores Inc., which all criticized the settlement.

Various retailers have reportedly vowed to appeal Gleeson’s settlement approval.

Full Content: Businessweek

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