Wal-Mart sues Visa for $5B over swipe fees

|About: Wal-Mart Stores, Inc. (WMT)|By:, SA News Editor

Wal-Mart (WMT) accuses Visa (V) of setting excessive swipe fees in violation of antitrust laws, and wants $5B in compensation.

The suit comes a week after an appeals court upheld a Federal Reserve-imposed $0.21 cap on debit card swipe fees, in spite of retailer opposition.

Wal-Mart, Target, and others opposed a $5.7B swipe-fee settlement covering suits from dozens of retailers, arguing the deal won't prevent fees from rising down the line.

Wal-Mart also accuses Visa and its bank partners of "perpetuating the use" of relatively fraud-prone magnetic stripe cards in lieu of more secure chip/PIN technology (widely used in Europe).