More than 100 merchants suing Visa, MasterCard
Aug. 19, 2013 – Both Visa and MasterCard are being sued by more than 100 large merchants over the companies’ rules preventing member banks from issuing credit and debit cards from competing providers.
Reports say one of the aims of merchants in the suit is to get out of a settlement reached last year in a class action case. In that suit, Visa, MasterCard and several large banks have agreed to pay a settlement totaling $7.25 billion to make up for alleged credit-card interchange overcharges.
The older suit has been ongoing for more than seven years. Under the proposed settlement, large banks and credit card companies would be required to pay an estimated $6.05 billion to retailers, and Visa and MasterCard would be required to reduce interchange fees for eight months by an amount equal to $1.2 billion. Merchants would also be permitted to assess a surcharge on credit card transactions.
The new suit was filed Tuesday in federal district court in Marshall, Texas, reported DallasNews.com. The report says Atlanta-based Delta Air Lines is the lead plaintiff.