Visa, MasterCard Reach $6 Billion Settlement With Retailers

LOS ANGELES (CBS) — Consumers using credit cards could be hit with fees as a result of a settlement reached between credit card companies, banks and retailers.

Visa, Inc. and MasterCard, Inc. agreed Friday night to pay a number of retailers $6 billion to settle what some are calling “the largest antitrust settlement in U.S. history.”

The long-running suit dates back to 2005 when a large number of retailers — including Safeway, Walgreens, Vons, Ralphs amongst others — alleged that the card issuers conspired to fix the fees stores pay to accept credit cards.

Retailers like Ralphs and Vons were used to paying “swipe fees” of 2 percent or more every time a shopper uses a credit card. As part of the settlement, they will no longer be required to shoulder those fees.

Additionally, credit card companies have agreed to reduce those fees for eight months. This does not apply to debit cards.

Comments

One Comment

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Los Angeles

KNX 1070 Newsradio
Play.It

Listen Live