National Retail Federation Opposing Visa/MC Fee Settlement
Recently, Visa and Mastercard, along with some major banks, proposed a settlement of $7.25 billion dollars. The settlement was restitution for retailers that had been victims of alleged fee fixing. The National Retail Federation is now publicly opposing the settlement.
The National Retail Federation is still unsure as to if they will be able to truly do anything about the situation, as it has not been made clear whether or not this case has the capability of being a class action suit. The reason they are trying to oppose the settlement is because it will hardly make a difference if swipe fees continue to increase. Credit card processing services cannot do anything about the swipe fees individual credit card providers and banks charge, so it is important to the credit card processing industry as well that fees do not go up in excess. If they do, it could spell trouble for the industry as time goes on. Also, if the settlement is accepted, then it means that retailers will have no further legal recourse if the fees continue to rise.
Since the National Retail Federation represents more than 9,000 retailers, all different shapes and sizes and some even from countries overseas, they hope that they can be heard on the matter before the settlement is accepted.
“The settlement was by the credit card companies and for the credit card companies. This will not help merchants or customers,” said Mallory Duncan, senior vice president and general counsel for the National Retail Federation.
Only time will tell whether or not the National Retail Federation will be allowed to speak on this matter. Hopefully whatever happens it will not negatively affect the retail or credit card processing industry.