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Prolonged lawsuit over card-swipe fees settled for $6.2 bn

By Sheetal Sukhija, Tajikistan News
18 Sep 2018, 23:56 GMT+10

NEW YORK, U.S. - In a settlement worth $6.2 billion, a prolonged lawsuit related to card-swipe fees was settled on Tuesday.

Visa, Mastercard and several U.S. banks agreed to pay $6.2 billion to settle the lawsuit that was brought by merchants over the fees that is paid when they accept card payments.

Earlier, Visa and Mastercard reached a $7.25 billion settlement with the merchants in the case, but a federal appeals court threw out the deal in 2016.

Subsequently, the U.S. Supreme Court refused to revive the case last year.

Documents from the class-action lawsuit, which was brought on behalf of about 12 million retailers more than a decade ago, reportedly included names of some of the car issuers including JPMorgan Chase & Co, Citigroup and Bank of America.

Retailers have accused the credit card companies of violating federal antitrust laws by forcing merchants to pay swipe fees and prohibiting them from directing consumers toward other methods of payment.

Experts have noted that the deal reached on Tuesday, is the largest all-cash U.S. antitrust settlement even though about 8,000 retailers opted out, considerably bringing down the value of the settlement.

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