17 January 2018
visit http://response.ncr.com

MasterCard settles with retailers

28 April 2003  |  5607 views  |  0 Mastercard point of sale

MasterCard has reached an eleventh-hour settlement with large US retailers over a potentially crippling mass action debit card lawsuit, leaving Visa exposed as the remaining trial defendant.

US District Judge John Gleeson said the case against MasterCard had been settled out-of-court, but imposed a gagging order on details as motions began for jury-selection in the remaining suit against Visa.

The case against the credit card companies has been spearheaded by retailing giant Wal-Mart, which alleges that the major card schemes levy excessive fees for debit card payments which have to be passed on to consumers.

Merchants want the freedom to clear debit transactions on less expensive, independent networks that use personal identification numbers, or PINs.

Before the settlement, market watchers had speculated that an unfavourable result could push the bank-backed card schemes to the brink of bankruptcy.

It remains to be seen whether Visa will follow MasterCard's example and settle its differences with the merchants out of court.

Speaking before news of MasterCard's settlement had circulated, Visa vice president Daniel tarman, commented: "Visa USA will vigorously defend in court every consumer's right to choose how to pay at the checkout counter to stop Wal-Mart's assault on consumer choice. If Wal-Mart succeeds in this case, it will be able to reach into every consumer's wallet and dictate how they pay."

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

Visa and MasterCard ordered to repay consumers $800 million

Visa and MasterCard ordered to repay consumers $800 million

09 April 2003  |  5093 views  |  0 comments
Small businesses side with MasterCard and Visa in lawsuit

Small businesses side with MasterCard and Visa in lawsuit

04 April 2003  |  4221 views  |  0 comments
Judge throws out Visa/MasterCard motions in merchant suit

Judge throws out Visa/MasterCard motions in merchant suit

02 April 2003  |  5328 views  |  0 comments
Visa USA approaches trillion dollar volumes in 2002

Visa USA approaches trillion dollar volumes in 2002

26 March 2003  |  3468 views  |  0 comments
MasterCard records double digit growth in debit

MasterCard records double digit growth in debit

20 March 2003  |  4571 views  |  0 comments

Related company news

 

Related blogs

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

Top topics

Most viewed Most shared
Buffett rubbishes cryptocurrencies; South Korea preps exchange crackdownBuffett rubbishes cryptocurrencies; South...
11548 views comments | 15 tweets | 17 linkedin
BNP Paribas Asset Management completes fund transaction blockchain testBNP Paribas Asset Management completes fun...
10160 views comments | 14 tweets | 33 linkedin
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
9594 views comments | 32 tweets | 34 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
9461 views comments | 17 tweets | 18 linkedin
Exchanges call for global fintech standardsExchanges call for global fintech standard...
9191 views comments | 17 tweets | 13 linkedin

Featured job

Competitive
Germany, Austria or Switzerland

Find your next job