Visa-MasterCard Settle 5.7 Billion Swipe Case..
Source: sfgate.com, google news
Dec. 13 (Bloomberg) -- Visa Inc. and MasterCard Inc. won approval for a $5.7 billion settlement that ended years of litigation with U.S. merchants over allegations that credit-card swipe fees are improperly fixed.
U.S. District Judge John Gleeson said that he was satisfied with the settlement, which was estimated to be the largest-ever U.S. antitrust accord.
“For the first time, merchants will be empowered to expose hidden bank fees to their customers, educate them about those fees and use that information to influence their customers’ choices of payment methods,” Gleeson wrote in his ruling today in federal court in Brooklyn, New York.
Once owned by groups of major banks, Foster City, California-based Visa and Purchase, New York-based MasterCard have defended themselves for decades against legal claims that they operated price-fixing schemes. Swipe, or interchange, fees are set by Visa and MasterCard and paid by merchants when consumers use credit or debit cards
Read more: http://www.sfgate.com/business/bloomberg/article/Visa-MasterCard-5-7-Billion-Swipe-Fee-Accord-5062674.php
"Largest ever U.S.antitrust accord".
Turns out this is a win for the card companies. Further down in the article, it is explained that further lawsuits on this issue were permanently excluded. Large companies opposed this settlement, and it will be appealed.