The anti-monopoly settlement agreements proposed by Visa (V.US) and Mastercard (MA.US) are facing danger. Earlier, a judge in New York said that she was prepared to reject the agreement. This lawsuit has lasted for nearly 20 years and is one of the largest anti-monopoly and settlement cases in recent years.
According to the court records, US Brooklyn District Judge Margo Brodie told lawyers for the credit card networks and opponents during Thursday's hearing that she "may not approve the settlement". She plans to write an opinion explaining her decision and reasoning.
As part of the settlement, Visa and Mastercard agreed to limit the credit card swipe fees they charge while agreeing to a settlement agreement with the merchant plaintiffs. American merchants said this would save them at least $30 billion over five years.
Both credit card companies expressed disappointment. Mastercard called it a "fair solution" that provides greater flexibility for corporate management of credit card transactions, while Visa called it an "appropriate solution" to this nearly-19-year-old case.
The settlement, announced on March 26, aims to resolve most of the claims in the nationwide litigation, with small businesses accounting for more than 90% of the settled merchants.
For years, companies have complained that Visa and Mastercard have charged excessive swipe fees or interchange fees when handling credit and debit card payments and unlawfully prevented them from directing customers to cheaper forms of payment.
According to data from the Merchants Payments Coalition, which represents retailers, grocers, convenience stores, and gas stations, the total amount of swipe fees in 2023 was $172 billion, more than double the amount in the past 10 years.
As part of the settlement agreement, Visa and Mastercard have agreed to lower the swipe fees they charge each merchant by at least four basis points for at least three years. In addition, over a period of five years, the average swipe fee for the two credit card networks must be at least seven basis points lower than the current average, subject to the scrutiny of independent auditors.
At the same time, the settlement agreement will also allow retailers to charge additional fees to customers who use Visa or Mastercard at checkout. Merchants will be able to adjust their fees based on the cost of accepting different credit cards and use pricing strategies to encourage customers to use payment cards with lower merchant costs.
Opponents include the National Retail Federation, the world's largest retail trade organization. It called the settlement "obviously insufficient" and its benefits "minimal and temporary," and said it would still leave Visa and Mastercard in charge of deciding swipe fees and impose "almost unlimited" bans on merchants' future claims.
消费 (Consumers)
The strategy is global, and Bruker Corp is one of the trading companies in the USA.