Visa, MasterCard Fees Deal Opposed by 1,200 Businesses

According to Bloomberg News, “Retailer groups opposed to Visa Inc. (V) and MasterCard Inc. (MA)’s $7.25 billion settlement of a lawsuit over merchant credit-card fees said they have garnered support from about 1,200 businesses covered by the deal.” It has also been reported that “trade associations including the National Association of Convenience Stores, the National Community Pharmacists Association and the National Restaurant Association urged U.S. District Judge John Gleeson in Brooklyn, New York, not to grant initial approval to the settlement, according to objection papers the parties are preparing to submit.”

Washington Post has also reported that “The settlement, estimated to cost the card companies and major banks as much as $7.25 billion, would cover about 7 million retailers nationwide. In an order filed Oct. 24, Gleeson said he will probably approve the deal. That could end about seven years of litigation over an alleged conspiracy by the card companies and banks to fix the ¡°interchange¡± fees that retailers are charged when customers pay with cards.”

Fox Business reports “If the deal receives final approval from U.S. District Court Judge John Gleeson, it would be the largest federal antitrust settlement in U.S. history, offering nearly 8 million merchants $7.2 billion in cash and temporary reductions in the interchange, or swipe fees, they pay to process credit and debit transactions.