Swipe Fee Settlement Yields More Litigation

By: John W. McGuinness
– AntitrustConnect 

Although the parties reached a $7.25 billion class action settlement of the antitrust suit brought by merchants against Visa and MasterCard over swipe fees, the case is far from over.

The protracted legal battle centers on allegations by merchants that Visa and MasterCard engaged in a price-fixing conspiracy to set interchange fees and then imposed restrictions upon retailers not to disclose the charges to consumers or offer cheaper, alternative forms of payment. The settlement agreement - reduced to $5.7 billion after a large faction of class member merchants opted out of the deal - was meant to be the end of the road.

 

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