23 November 2017
visit www.avoka.com

US card fee settlement gets preliminary approval

12 November 2012  |  6465 views  |  0 credit card

A US judge has granted Visa and MasterCard's $7.25 billion interchange settlement deal preliminary approval in the face of opposition from retailers.

The settlement agreed in July was designed to end a seven-year legal dispute over interchange fees, with retailers securing a multi-billion dollar cash payment and significant reforms of Visa and MasterCard rules and business practices.

However, the National Retail Federation (NRF) and big hitters including Walmart and Target have voiced their opposition, claiming that if the case went to trial a judgement could be worth hundreds of billions of dollars.

Judge John Gleeson of the US District Court for the Eastern District of New York has now rejected the concerns and granted the settlement preliminary approval.

Visa and MasterCard have both welcomed the news. Noah Hanft, general counsel, MasterCard, says: "While we recognise some merchants may have different opinions, the settlement represents a solution reached after years of litigation and months of negotiation."

Retail groups have signalled their intention to continue their fight though. Hank Armour, president and CEO, National Association of Convenience Stores, says: "We remain convinced that this is a bad deal and we will look at our options to appeal this decision. This bad deal should not be forced upon the vast majority of merchants and - their customers - who do not want it."
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Europeans fear they'll pick up tab for lower interchange fees

Europeans fear they'll pick up tab for lower interchange fees

12 October 2012  |  8836 views  |  9 comments
Walmart opposes $7.25bn interchange settlement

Walmart opposes $7.25bn interchange settlement

24 July 2012  |  7888 views  |  0 comments
Retailers and banks step up war of words over interchange fee cuts

Retailers and banks step up war of words over interchange fee cuts

09 December 2011  |  8787 views  |  2 comments
Fed surprises markets with watered-down interchange caps

Fed surprises markets with watered-down interchange caps

30 June 2011  |  7871 views  |  1 comments
US Senate votes to curb debit card interchange fees

US Senate votes to curb debit card interchange fees

14 May 2010  |  11403 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.capgemini.comvisit https://www.niceactimize.com

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
21080 views comments | 33 tweets | 36 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
12505 views comments | 15 tweets | 42 linkedin
Barclays warns of unprecedented online fraud this ChristmasBarclays warns of unprecedented online fra...
10254 views comments | 17 tweets | 35 linkedin
Sepa instant payments goes liveSepa instant payments goes live
9598 views comments | 45 tweets | 78 linkedin
ING brings data privacy to blockchain transactionsING brings data privacy to blockchain tran...
8506 views comments | 25 tweets | 35 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job