Judge Blocks $30 Billion , Visa, Mastercard , ‘Swipe Fee’ Settlement.
Federal Judge Margo Brodie rejected the $30 billion antitrust settlement on June 25, 'The Hill' reports.
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In March, Visa and Mastercard agreed to limit interchange fees that retailers who accept their cards are charged.
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The companies said they would reduce swipe fees for at least three years by a minimum of 4 basis points.
They also agreed to "cap their fees at 2023 levels for the next five years," 'The Hill' reports.
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Retail industry groups criticized the proposed settlement since it would only provide temporary relief to a larger problem.
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Thankfully, the judge made the right call in recognizing what a bad deal this would have been for Main Street merchants and their customers.
, Christopher Jones, member of the executive committee of the Merchants Payments Coalition (MPC), via 'The Hill'.
It’s extremely unusual for a judge to reject a settlement at the preliminary stage, so this shows how far Visa and Mastercard’s proposal missed the mark, Christopher Jones, member of the executive committee of the Merchants Payments Coalition (MPC), via 'The Hill'.
The average swipe fee that retailers pay is 2.24%, but it can go up to 4%, according to the National Retail Federation.
The credit card payment market has been broken for decades.
, The Retail Industry Leaders Association, via 'The Hill'.
Leading retailers are grateful that Judge Brodie saw through the facade of the proposed settlement.., The Retail Industry Leaders Association, via 'The Hill'.
... and understood that it would not provide the meaningful change that is needed to correct the competitive imbalance in the interchange ecosystem, The Retail Industry Leaders Association, via 'The Hill'.
Retailers have also called on lawmakers to pass the Credit Card Competition Act.
Supporters claim that the bill would break up Visa and Mastercard's dominance and allow for more competition
