Judge rejects multibillion Visa, Mastercard settlement in swipe fee case
What were the main concerns of the opposing merchants?
The main concerns of the opposing merchants were that card fees would remain too high under the proposed settlement, and Visa and Mastercard would retain too much control over card transactions. They also objected to rules forbidding them from telling customers why some cards cost more than others and from steering customers to cheaper card options.
How did Visa react to the preliminary rejection of the settlement?
Visa expressed disappointment in the court's stance on the proposed settlement when the judge signaled she was likely to reject it. They stated their belief in continued engagement between industry and merchants going forward.
Why did the judge reject the $30 billion settlement?
The judge rejected the $30 billion settlement because many merchants and trade groups, including the National Retail Federation, opposed it. They argued that card fees would remain too high, and Visa and Mastercard would retain too much control over card transactions. The judge's decision could force Visa and Mastercard to negotiate a new agreement that's more favorable to merchants or go to trial.