A federal judge said she’s not likely to approve the $30 billion settlement between the payment processing giants Visa and Mastercard and the merchants who say they’ve overpaid on swipe fees. In a brief order, Judge Margo Brodie of the Eastern District of New York said she was unlikely to grant final approval to the settlement.
FILE- An unnamed person holds two Visa and Mastercard credit cards in Haverhill, Mass., June 15, 2017. Judge Margo Brodie of the Eastern District of New York said she’s not likely to approve the $30 billion settlement between Visa and Mastercard and merchants who say they’ve overpaid on swipe fees.
But the settlement was not universally accepted. The National Retail Federation, the largest U.S. retail trade group, said it was likely to oppose the settlement, saying the relief was only temporary and that payment processing fees remain too high. The settlement would have capped swipe fees for five years, which merchants opposed to the settlement said was insufficient.
In a brief order, Judge Margo Brodie of the Eastern District of New York said she was unlikely to grant final approval to the settlement. The decision means that, absence a settlement, the case could go to trial.Online marketplace eBay to drop American Express, citing fees, and says customers have other options
The settlement stems from a 2005 lawsuit that alleged merchants paid excessive fees to accept Visa and Mastercard credit cards, and that Visa, Mastercard and their member banks acted in violation of antitrust laws. Visa and Mastercard collect a fee from every transaction that runs on their network. The fee varies depending on the size of the merchant as well as the industry they operate in, but generally it’s between 1% and 3% of a transaction’s value.
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