US Merchants File Antitrust Lawsuit against Visa, Mastercard

by San Antonio Attorney

It is regarded as one of the biggest private anti-trust settlements of all time. Businesses in America pay the largest swipe fees in the entire world. This influences the cost of all purchases in the country with a Mastercard or Visa. Credit card companies and banks were sued by countless merchants, and the merchants succeeded.

According to the U.S. National Retail Federation, the debit card and credit card swipe fees almost reached $50 billion dollars, which is three times bigger about ten years ago.

An antitrust lawsuit was filed by 7 million retailers, accusing MasterCard, Visa, Bank of America, and JPMorgan of overcharging retailers billions of dollars in transaction fees. MasterCard and Visa agreed to a $6.05 billion settlement.

The settlement deal now makes it possible for businesses to impose a surcharge against consumers who use credit card as a means to counterbalance the credit card fees.

The U.S. National Retail Federation said that every household pays an average of $427 a year for those fees.

According to one grocery store owner, the 91 cents transaction fee is a lot of money, and it is not good for his business. Each time customers arrive at his store he has to tell them about the $1 fee and the majority of them do not want pay it and they leave, the store owner said.

A few experts say the payout may result in increased charges; others say it is going to bring more savings.

According to the U.S. National Retail Federation, the payment method for the goods might change as a result of the settlement. The very same two-tiered charges people see at gasoline stations where the cost for cash and credit vary may eventually come about to the local grocery stores as well.

 

– Credit card debt is one of the main reasons why consumers file for bankruptcy. If you have excessive credit card debt, seeking Bankruptcy Help may be the best option for you.

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