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Visa, MasterCard $5.7B swipe fee accord approved by judge

  • Visa (V +1.6%) and MasterCard (MA +1%) tick higher after a U.S. federal judge approves the $5.7B class-action settlement that ended years of litigation over allegations that credit card swipe fees are improperly fixed.
  • The settlement has been opposed by merchant trade groups and big-box retailers such as Wal-Mart (WMT -0.7%) and Target (TGT -0.9%), which say it won't prevent the fees from rising in the future and gives too much leeway to the card companies.
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Comments (6)
  • ChuckXX
    , contributor
    Comments (1256) | Send Message
     
    Iam thankful to the man above about it. Maybe they can all get back to bigger and better things.
    13 Dec 2013, 07:30 PM Reply Like
  • washcat
    , contributor
    Comments (5) | Send Message
     
    Truly amazing that the credit card companies have more clout in congress than Wal-Mart. Once again, the consumer gets the shaft.
    13 Dec 2013, 10:22 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1118) | Send Message
     
    What does a federal class-action case have to do with Congress?
    13 Dec 2013, 11:52 PM Reply Like
  • ChuckXX
    , contributor
    Comments (1256) | Send Message
     
    Its ridiculous to say the consumer gets the shaft. The incredible convenience that both V and MA provide Plus the protection they offer is fantastic. You are way off base in your thinking here.
    14 Dec 2013, 09:00 AM Reply Like
  • Misho ILIEV
    , contributor
    Comments (615) | Send Message
     
    It's kind of alluring to say that the consumer is screwed.

     

    But the truth is, I am afraid, that if the swipe fees were lower the merchants would have kept that margin for themselves. If merchants have the market power to charge the current, arguably supra-competitive prices, why lower swipe fees would stop them from doing it still and have better profit margins?

     

    I see this more like a redistribution of margin between payment processor and merchant, rather than between merchant and consumer.

     

    Arguably the consumer suffers as merchants become less profitable and provide worse service and less shopping innovation. But then payment processors get more capital to provide better payment services. Who's to make the value judgment as to what is better - more innovative shops or top notch secure payment services...
    14 Dec 2013, 06:17 PM Reply Like
  • tenspeedr
    , contributor
    Comments (3) | Send Message
     
    It just amazes me that these banks even charge a swipe fee at all. Banks are so heavy into every kind of fee imaginable, and they're already making money hand over fist, all while charging way out of line interest rates. They might as well print thier own money too while they're at it. Stupefying.
    15 Dec 2013, 02:35 AM Reply Like
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