US retailers have reached a $7.25 billion class action settlement with Visa, MasterCard and nine major credit card issuers, ending a seven-year legal dispute over interchange fees.
"Over time, the reforms induced by this case and in this settlement should help reduce card-acceptance costs to merchants, which in turn, will result in lower prices for all consumers."
Wishful thinking: Durbin's debit card fee cut allowed retailers to save over US$7bn. Guess how much was passed on to the consumers (via price reductions)? Big fat zero.
© Finextra Research 2013