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Retail Group Opposes Credit Card Fee Settlement

USAToday.com

September 11, 2012

NEW YORK (AP) -- The National Retail Federation is opposing a proposed $7.25 billion settlement that Visa, MasterCard and major banks have agreed to pay retailers for alleged fee fixing.

The group represents retailers from the U.S. and 45 countries overseas.

The trade association said Tuesday that its board has agreed to go to court to try to block the settlement. The NRF, which is not a party to the lawsuit, says it is unsure whether outside groups will be allowed to intervene.

In July, Visa, Mastercard and the banks settled a lawsuit by several retailers that claimed card issuers conspired to fix merchants' fees for accepting credit cards.
Retailers have long complained about the billions of dollars in "swipe" or "interchange" fees that that they have had to pay, which average about 2% of the price of a purchase.

Under the settlement, stores will be allowed to charge customers more if they pay with a credit card than with cash.

Some retailers, including Wal-Mart Stores and Target, have spoken out against the settlement.

The NRF says it believes the proposed settlement will not stop swipe fees from continuing to rise, which will hurt both retailers and shoppers, and that it will prevent any future legal challenges.

"The proposal is a lose-lose-lose for merchants, consumers and competition," NRF President and CEO Matthew Shay said.
Representatives for Visa and Mastercard could not be immediately reached for comment.

Credit card companies say stores benefit from being able to accept credit and debit cards from customers, who often spend more when they're using plastic instead of cash or checks.

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