Interchange Fee Lawsuit Settlement Not So Settled

by Mercator Advisory Group 0

Pos terminal confirms the payment by smartphone. Vector illustration in flat design on green background. nfc payments concept

As we wait for the impending court action that will determine whether the recent interchange-fee lawsuit is accepted, merchant organizations are ratcheting up their opposition any way they can. Merchant are organizing for a fight much in the same way they were in December 2010 when the initial draft for modifications debit interchange rates were released.

“While the card networks and their representatives have suggested it is a fait accompli, the growing objections from the merchant community foreshadow the fight that lies ahead as Visa and MasterCard attempt to force the terms of the settlement on nearly 8 million merchants,” said the organizations that signed the letter.

If the courts ratify the settlement, the card networks will have effectively shut the merchant community out of further legal actions regarding any of their operating rules. At the very least, the settlement would make the merchants’ opposition much more expensive to litigate.

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