Visa and Mastercard Ask Federal Court to Legalize Transaction Fees

Search form

Visa and Mastercard Ask Federal Court to Legalize Transaction Fees

Visa and Mastercard Ask Federal Court to Legalize Transaction Fees
Wed, 5/29/2013 - by Agence France-Presse

Credit card giants Visa and Mastercard sued retailers that rejected a multibillion-dollar settlement over transaction fees and asked the court to rule the fee practices weren’t illegal.

The latest legal maneuver comes after years of legal battles over so-called “swipe” fees retailers must pay credit cards in each transaction.

Last year, in a proposed settlement, Visa, MasterCard and some banks that issue their cards agreed to pay more than $6 billion to millions of merchants that had sued them for allegedly fixing the card use fees.

But a number of retailers and trade groups — including behemoths such as Walmart, Target and Macy’s — have rejected the deal, saying it would not address the underlying concerns over how the fees are set.

On Friday, the credit card companies launched a counter-attack, asking U.S. District Judge John Gleeson to rule that their fee practices didn’t violate antitrust law, according to the complaint filed in the U.S. district court in Brooklyn.

Visa and MasterCard want to put an end to the legal morass that began back in 2005 with the settlement, which would amount to about $7.25 billion — $6.05 billion for past damages and the $1.2 billion for relief.

“We believe the settlement is a reasonable way to end seven years of negotiation. We remain confident that this settlement will be approved in the fall,” said Trish Wexler, spokeswoman for the Electronics Payment Coalition, which includes Visa.

But last week, another group of retailers rejected the July 2012 draft agreement. They have until May 28 to formally reject the agreement, said a spokesman for the National Retail Federation.

A final hearing is scheduled for September 12.

The NRF “opposes the settlement because it fails to reform the price-fixing system… or to introduce transparency that would lead to competition to lower the fees,” said spokesman Craig Shearman.

“Rather than lowering the fees, the card companies have proposed that the fees be passed along to consumers in the form of a surcharge, even though most major retailers have rejected surcharges.”

In addition, he argued that the settlement amounts, as shared among millions of retailers, would only amount to about three months worth of transaction fees, which the NRF argued is insufficient.

“Swipe” fees range from about 1.8 percent to 2.5 percent, Visa has said, and are worth about $40 billion annually, according to news reports.

 

Article Tabs

I removed the flag not only in defiance of those who enslaved my ancestors in the southern United States, but also in defiance of the oppression that continues against black people globally in 2015.

Stingray, activist surveillance, surveillance programs, KingFish, Triggerfish, Harris Corporation, California Electronic Privacy Act, ACLU, unwarranted surveillance

The multi-agency effort to acquire a controversial cellphone surveillance device would make it possible for Oakland and Fremont police to scoop up data from everyone in a given area – dragnet style.

Micah White, Occupy Wall Street, movement strategies, movement tactics, mass protests, Black Lives Matter, The End of Protest

The co-creator of Occupy Wall Street has advice for the next generation of social movements: “Never protest the same way twice.”

The HRA protects the right to life, liberty, security, a fair trial, respect for private life and freedom of expression – it also bans torture, slavery and discrimination.

By making the cost of breaking the law outweigh the cost of following it, business owners will be deterred from committing the crime in the first place.

Fight for $15, $15 minimum wage, bank bailouts, corporate subsidies,

Municipal leaders should be commended for acknowledging the current wage is too low – but phasing in a higher wage over many years is unacceptable in an economy where costs of living are rising and wages are falling.

Posted 3 days 2 hours ago

bout time! Timeline of same-sex marriage in the United States

Posted 5 days 1 hour ago
Greek debt crisis, Greek anti-austerity movement, Alexis Tsipras, Troika, Syriza party, Greek referendum, Euro crisis

Greeks will find their savings blocked and their banks closed for a week following a fateful weekend that has shaken Europe’s single currency.

Posted 3 days 23 hours ago
carbon emissions, mercury emissions, EPA, Clean Air Act

The Supreme Court invalidated a key Obama administration environmental regulation aimed at limiting emissions of mercury and other hazardous pollutants mainly from coal-fired power plants.

Posted 3 days 2 hours ago

From Sweden with socialism, let’s google some shit.

Posted 2 days 1 hour ago

bout time! Timeline of same-sex marriage in the United States

carbon emissions, mercury emissions, EPA, Clean Air Act

The Supreme Court invalidated a key Obama administration environmental regulation aimed at limiting emissions of mercury and other hazardous pollutants mainly from coal-fired power plants.

Greek debt crisis, Greek anti-austerity movement, Alexis Tsipras, Troika, Syriza party, Greek referendum, Euro crisis

Greeks will find their savings blocked and their banks closed for a week following a fateful weekend that has shaken Europe’s single currency.

The HRA protects the right to life, liberty, security, a fair trial, respect for private life and freedom of expression – it also bans torture, slavery and discrimination.

Sign Up