ADVERTISEMENT

Credit card lawsuit: Visa and MasterCard penalized over debit card fee

By

Visa USA and MasterCard are set to pay the federal government a total of $3.5 million as part of an 11-year-old court struggle that saw retailers square off against Visa and MasterCard in a battle over debit card fees.  A settlement fund will provide $3.7 million.

Plaintiffs in the class-action lawsuit settled the case in 2003, but the government only submitted a claim in February 2006.  In turn, that claim became the focus of a separate confrontation when lawyers for the plaintiffs charged that the U.S. was not entitled to a portion of the $3 billion settlement fund that was established for retailers.

With its decision to file a claim, the government basically alleged that it shared the pain felt by U.S. retailers over Visa and MasterCard rules that forced merchants to take their branded debit cards if they also accepted Visa and MasterCard credit cards. 

Credit cards and debit cards are accepted at a wide variety of government facilities -- from military post exchanges to the Smithsonian Institution's gift shop.   

Visa and MasterCard indicated their satisfaction over the fact that a settlement had been reached.

Published: January 9, 2007


Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.




Follow Us


Updated: 12-02-2016


Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.


ADVERTISEMENT