MasterCard and Visa have received court approval for a $5.7 billion settlement with U.S. merchants regarding accusations that credit-card swipe fees were being unlawfully set, Bloomberg News reported on December 13.
The agreement, approved by U.S. District Judge John Gleeson, ends eight years of litigation that began when a group of merchants filed a class-action lawsuit over the fees.
According to Bloomberg, shares for Visa and MasterCard rose after the settlement approval was announced.
The National Retail Federation, however, expressed disappointment at the ruling, saying that it would do nothing to reduce swipe fees or keep them from rising in the future.
In a statement, the trade association said: “The settlement permanently ties the hands of thousands of businesses who wanted nothing to do with this misguided case, and a decision to approve it violates established law and common sense. We are reviewing the ruling and will take whatever steps are necessary to protect the rights of merchants and safeguard the pocketbooks of their customers.”
To learn more about the reaction against the court ruling, read the full story here.
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