Walmart Opposes $7B Visa/Mastercard Deal, Urges Retailers to Join Them
Walmart is not pleased with the Visa/MasterCard settlement and they're not keeping it to themselves. The company is urging other retailers to reject the multi-billion dollar proposed settlement.
Visa and MasterCard reached a $7.25 billion agreement with retailers earlier this month for damages in a price-fixing claim involving credit card swipe fees. The deal repays retailers for unfair fees and also lowers swipe fees for the next few months.
As part of the settlement, retailers now have the option to charge credit card users more for their purchases.
That's all well and good but the real issue for Walmart and other retailers is what the agreement doesn't do.
While the agreement lowers swipe fees for the next few months, it doesn't stop Visa and MasterCard from increasing the fee as soon as that time runs out. What's more, it gives the credit card companies immunity from anti-trust litigation going forward according to Forbes.
The settlement has not yet been approved which makes all this negative publicity even more problematic for Visa and MasterCard.
It's possible that a judge could use this as reason to reject the settlement.
MasterCard has said that Walmart's opinion is not necessarily a reflection of how retailers feel, reports USA Today. The Electronic Payments Coalition, which represents Visa, made a similar statement.
But it's not just Walmart who disapproves of this settlement.
The National Association of Convenience Stores opposed the settlement from the time it was first reported. Target has also come out against the proposed deal, according to USA Today.
The retailers involved in the suit still support the Visa/MasterCard settlement but that may not be enough. If opposition from retailers like Walmart continues there may not be a settlement.
- Wal-Mart asks retailers to reject swipe fee deal (CNN Money)
- Visa, MasterCard Settle Record $7.25B Antitrust Case (FindLaw's In House)
- Visa and MasterCard Settle DOJ Lawsuit, Amex Fights On (FindLaw's Decided)
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