Judge Blocks $30 Billion Visa, Mastercard ‘Swipe Fee’ Settlement

Judge Blocks $30 Billion , Visa, Mastercard , ‘Swipe Fee’ Settlement.
Federal Judge Margo Brodie rejected the $30 billion antitrust settlement on June 25, 'The Hill' reports. .
In March, Visa and Mastercard agreed
to limit interchange fees that retailers
who accept their cards are charged. .
The companies said they would reduce swipe fees for at least three years by a minimum of 4 basis points.
They also agreed to "cap their fees at 2023 levels
for the next five years," 'The Hill' reports. .
Retail industry groups criticized the proposed settlement since it would only provide temporary relief to a larger problem. .
Thankfully, the judge made the right
call in recognizing what a bad deal
this would have been for Main Street
merchants and their customers. , Christopher Jones, member of the executive committee
of the Merchants Payments Coalition (MPC), via 'The Hill'.
It’s extremely unusual for a judge to
reject a settlement at the preliminary
stage, so this shows how far Visa and
Mastercard’s proposal missed the mark, Christopher Jones, member of the executive committee
of the Merchants Payments Coalition (MPC), via 'The Hill'.
The average swipe fee that retailers
pay is 2.24%, but it can go up to 4%,
according to the National Retail Federation.
The credit card payment market
has been broken for decades. , The Retail Industry Leaders Association, via 'The Hill'.
Leading retailers are grateful that
Judge Brodie saw through the facade
of the proposed settlement.., The Retail Industry Leaders Association, via 'The Hill'.
... and understood that it would not
provide the meaningful change that is
needed to correct the competitive
imbalance in the interchange ecosystem, The Retail Industry Leaders Association, via 'The Hill'.
Retailers have also called on lawmakers to pass the Credit Card Competition Act.
Supporters claim that the bill would break
up Visa and Mastercard's dominance
and allow for more competition