168:, said, "This proposed settlement allows the card companies to continue to dictate the prices banks charge and the rules that constrain the market including for emerging payment methods, particularly mobile payments. Consumers and merchants ultimately will pay more as a result of this agreement — without any relief in sight." Josh Floum, general counsel for Visa, responded, “Our belief that the agreement will eventually receive final approval was strengthened today. As we have said from the beginning, this settlement is a fair and reasonable compromise for all parties.”
281:
appointing an independent expert during the hearing on preliminary approval in
November 2012. He informed the parties in March 2013 that he was considering Sykes, a professor at New York University's law school. According to a resume published by the court, Sykes previously taught at Stanford and the University of Chicago and has published several books and scholarly articles on economics and trade. No party objected to the appointment of Sykes. While parties routinely make use of experts to support their positions, judges rarely exercise this option.
214:, the senator from Illinois who was the main proponent of those rules, has called the proposed settlement on credit card swipe fees, "gives Visa and MasterCard free rein to carry on their anti-competitive swipe-fee system with no real constraints and no legal accountability. This is not a settlement I would agree to. I hope that the remaining merchant plaintiffs will review the proposed settlement carefully and think hard about whether it will be good for the future of our credit- and debit-card systems.”
131:, also known as the NACS, complained that this measure "merely make retailers the collection agents for the banks." The National Retail Federation said, "that card company fees are the problem and the surcharge story is a volume that belongs on the fiction aisles. The real threat to retailers and their customers continues to be price-fixed hidden fees that can only be cured by transparency and competition."
227:
litigation releases that bar future suits was an important point of contention. Jeff
Shinder, a lawyer for the plaintiffs said, "The proposed settlement violates the due process rights of millions of merchants by denying them the ability to opt out of the injunction, and this fundamental issue of law should be addressed now before notice goes out to merchants."
95:, also known as swipe fees, that are charged to merchants for the privilege of accepting payment cards, at artificially high levels. In their complaint, the plaintiffs also alleged that the defendants unfairly interfere with merchants from encouraging customers to use less expensive forms of payment such as lower-cost cards, cash and checks.
191:, opted out of the proposed settlement and urged its members to do the same. Deborah White, a senior RILA official, said, "RILA and the overwhelming majority of our members agree that the proposed class action settlement is a bad deal for retailers." RILA members are legally required to opt out on their own.
243:
In April 2013, the three law firms appointed to lead the plaintiffs in this case asked for $ 720 million in fees. If approved this would be one of the largest awards of legal fees in
American history. They argued that such high fees were reasonable given the amount of the settlement and the risks and
103:
On
November 27, 2012, United States District Judge John Gleeson entered an order granting preliminary approval to a proposed settlement. Speaking of the settlement Gleeson said, “I don’t mean to suggest for a moment that there are not a number of issues that are going to require significant scrutiny.
134:
Opponents object to provisions that would bar future lawsuits and even prevent merchants from opting out of significant portions of the proposed settlement. Stephen
Neuwirth, a lawyer representing Home Depot, said, “It’s so obvious Visa and MasterCard were prepared to make a large payment because of
122:
The settlement provides for the cash equivalent of a 10 basis-point reduction (0.1 percent) of swipe fees charged to merchants for a period of eight months. This eight-month period would probably begin in the middle of 2013. The total value of the settlement will be about $ 7.25 billion. This amount
75:
In March 2024, an important agreement was reached by Visa and
Mastercard to reduce what are known as "swipe fees" for merchants in the United States. This change, set to last five years, is expected to save retailers about $ 30 billion. It marks the end of a long-standing legal battle over antitrust
175:
The NACS is strongly encouraging its members to opt out. Hank Armour, president and CEO of NACS said, "It is important to note that if you do nothing, it will be presumed by the court that you accept the terms of the proposed settlement. Even if you submitted a declaration objecting to the proposed
58:
approved a settlement in the case that amounted to $ 5.54 billion. After four more years of litigation, in March 2023, the Court of
Appeals for the Second Circuit affirmed the District Court’s final approval order, with a modification reducing service awards, and allowing the claims process to move
234:
In June 2016, the United States Court of
Appeals for the Second Circuit overturned the settlement on the ground that class counsel could not adequately represent merchants who has a significant interest in the monetary relief provided by the settlement and merchants who could only benefit from the
171:
Class members can opt out of the monetary part of the settlement in addition to objecting in court. Visa, MasterCard, and issuing banks can scuttle the settlement if merchants that account for 25 percent or more of credit card spending in the United States since
January 1, 2004, to the approval of
280:
Judge
Gleeson retained Alan Sykes as an independent expert in order to help the judge evaluate the proposed settlement. Gleeson said he appointed Sykes would "advise the court with respect to any economic issue that may arise in connection" with final approval of the settlement. Gleeson mentioned
126:
A part of the settlement that allows merchants to charge fees to customers paying via credit card in order to recoup swipe fees took effect on January 27, 2013. Debit cards and transactions in the ten states that prohibit credit-card surcharges will not be affected. Many large retailers, such as
230:
In January 2013, the United States Court of Appeals for the Second Circuit ruled that any appeals against the settlement that received preliminary approval in November 2012 would not be heard until objections to the settlement are filed and considered by the trial court in September 2013. The
226:
Immediately after the preliminary approval of the settlement by Judge Gleeson in November 2012 a group of plaintiffs appealed to have it invalidated. The plaintiffs argued that the settlement violated their rights by not allowing them to opt out of some provisions. The inability to opt out of
176:
settlement last fall, you must respond to the notice and submit something in writing again if you want to opt-out of or object to the proposed settlement." The NACS has created a website dedicated to encouraging merchants to opt out that provides detailed instructions on how to do so.
104:
I’m not persuaded that the deficiencies are the obvious deficiencies that ought to derail preliminary approval.” Gleeson's approval was important because it allows the potential seven million or more members of the class to begin the process of opting in or out of the settlement.
76:
issues involving these two major credit card issuers. As part of the settlement, the companies agreed to lower their processing fees at all US merchants by at least four basis points for the next three years, ensuring these reduced rates stick for a total of five years.
268:
approved a settlement in the case that amounted to $ 7.25 billion. The settlement lowers interchange fees for merchants and also protects credit card companies from being sued over the issue again in the future. That settlement was reversed. Currently one for
218:, a representative from Massachusetts and a primary supporter of legislation to repeal rules on debit card swipe fees said he supports the settlement and stated, "A free-market approach in this area will be better for the economy and all concerned parties.”
244:
complexity of the case. This dollar amount represents about 4.5 times what would normally be billed at an hourly rate for the work performed. Approval of these fees partially depends upon approval of the settlement. The law firms in question are
82:
The agreement now awaits the green light from the U.S. District Court for the Eastern District of New York, which, if approved, will be a significant step towards addressing anti-competitive practices in the credit card processing industry.
108:
444:
62:
In December 2023, claim forms began mailing to millions of business owners in the class who accepted Visa and/or Mastercard payment cards during the 15-year class period from January 1, 2004, to January 25, 2019. The
163:
have reached a separate agreement with the defendants over swipe fees. The NACS, for example, harshly criticised the settlement and is urging its members to opt out. Tom Robinson, chairman of NACS and president of
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Moreover, the deal includes a provision that the reduced fees must be at least seven basis points lower than the current average. An independent auditor will review this aspect to confirm compliance.
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the scope of the releases being given. It’s all one quid pro quo and merchants like the Home Depot are being denied the chance to opt out of that quid pro quo and say this is a bad deal.”
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Wal-Mart and Target have opted not to impose surcharges. In the event of a return, surcharges are refunded along with the purchase price of the merchandise. The
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445:"U.S. Merchants Enter Into Landmark Class Action Settlement with Visa and Mastercard to Eliminate Anti-Competitive Restraints and Reduce Swipe Fees"
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256:. Any fees awarded will be split among about 40 different law firms. The distribution of fees is normally decided by lead counsel.
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The docket number is 05-md-01720. The United States District Court in the Eastern District of New York in Brooklyn is the venue.
325:
941:
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Prior to this settlement, merchants won a major victory against payment processors and card issuers with the passage of the
396:"Court Announces $ 5.54-6.24 Billion Settlement Providing Payments to Merchants who Accepted Visa or Mastercard since 2004"
375:
180:
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159:, Saks, and 1,200 other plaintiffs oppose the settlement. A group of large merchants including Kroger, Walgreens, and
340:
725:
314:
867:"Visa and Mastercard are profiting from higher swipe fees and growing debg, but their swipe-opoly is under fire"
956:
91:
Plaintiffs allege that Visa, Mastercard, and other major credit card issuers engaged in a conspiracy to fix
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over the payments network. Other variations include the Swipeopoly Settlement and the Swipe Fee Scandal.
50:. The suit was filed because of price fixing and other allegedly anti-competitive trade practices in the
317:, the National Restaurant Association, the National Community Pharmacists Association, and 15 others.
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In addition to Visa and MasterCard most of the largest credit card-issuing American banks such as
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practical effect of this ruling was to allow settlement notices to be sent to eligible merchants.
165:
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662:"Swipe Fee Settlement Appeal Delayed Until This Fall - Business Focus - Convenience Store News"
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The case is more commonly known as Swipeopoly, in reference to the alleged Visa and Mastercard
339:. Counsel representing MasterCard include Keila Ravelo, Wesley Powell, and Matthew Freimuth of
335:
Counsel for Visa include Robert Vizas, Robert Mason, Mark Merley, and Matthew Eisenstein of
92:
398:. U.S. District Court for the Eastern District of New York. PRNewswire. February 22, 2019.
328:; Patrick Coughlin, Bonny Sweeney, David Mitchell, Alexandra Bernay, and Carmen Medici of
294:
203:
290:
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was extended from May 31 to August 30, 2024, and further extended to February 4, 2025.
935:
829:
487:"What We Know About Visa and Mastercard's Landmark $ 30 Billion Swipe Fee Settlement"
431:"Millions of U.S. Businesses Eligible for a Share of $ 5.54B Payment Card Settlement"
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Co-lead class counsel include Laddie Montague, Merrill Davidoff, and Michael Kane of
156:
215:
47:
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211:
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51:
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357:
In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation.
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881:"Swipeology: $ 5.54 billion Visa Mastercard Interchange Fee Settlement/"
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32:
payment card interchange fee and merchant discount antitrust litigation
18:
Payment Card Interchange Fee and Merchant Discount Antitrust Litigation
825:"Visa, Mastercard $ 6.24B settlement gets preliminary okay from court"
759:"Lawyers in $ 7.25 Bin Credit Card Settlement Seek $ 720 Min in Fees"
588:
433:. Robbins Geller Rudman & Dowd LLP. PRNewswire. December 1, 2023.
604:"Retailers May Begin Charging Swipe Fees on Credit Card Purchases"
123:
could be decreased based on the number of plaintiffs who opt-out.
106:
27:
Largest consumer antitrust class action settlement in U.S. history
343:; Kenneth Gallo, Joseph Simons, Andrew Finch, and Gary Carney of
703:"MasterCard and Visa Will Pay Billions to Settle Antitrust Suit"
309:
are defendants in the case. Named class plaintiffs include the
183:(RILA), whose members include many prominent retailers such as
799:"EPC: NRF appeal of interchange settlement a "political ploy""
547:"Visa Mastercard 7.3 billion settlement over credit card fees"
584:"New Credit Card Swipe Fee Rules Are Good News for Shoppers"
853:"Westlaw Today - Premium Legal News | Thomson Reuters"
566:"Durbin Calls $ 6.6 Billion Visa Swipe-Fee Accord Bad Deal"
618:"'Call to Arms' Follows Swipe-Fee Settlement Appeal Delay"
522:"Visa Mastercard fee deal falls too short retailers claim"
38:
filed in 2005 by merchants and trade associations against
773:"Court approves controversial interchange fee settlement"
641:"Surcharge 'Propaganda' Distracts Real Swipe Fee Problem"
910:
Regulation II (Debit Card Interchange Fees and Routing)
775:. Bank Credit News. December 17, 2013. Archived from
801:. Bank Credit News. January 10, 2014. Archived from
722:"Merchants appeal $ 7.2 billion card-fee settlement"
324:; Craig Wildfang, Thomas Undlin, and Ryan Marth of
740:"Visa, MasterCard Merchant Settlement Overturned"
524:. Business Week. November 9, 2012. Archived from
46:, and numerous financial institutions that issue
688:"Retail group opts out of Visa, MasterCard pact"
516:
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419:. U.S. Court of Appeals for the Second Circuit.
54:. In February 2019, U.S. District Court Judge
8:
898:Official court-authorized settlement website
264:In December 2013, U.S. District Court Judge
701:Silver-Greenberg, Jessica (July 13, 2012).
273:6.24 billion is scheduled to go before the
311:National Association of Convenience Stores
129:National Association of Convenience Stores
345:Paul Weiss Rifkind Wharton & Garrison
410:"Dkt No. 503_Second Circuit Opinion.pdf"
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466:"Credit Card Processing Fees Explained"
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254:Robbins Geller Rudman & Dowd LLP
246:Robins, Kaplan, Miller & Ciresi
181:Retail Industry Leaders Association
720:Dye, Jessica (November 27, 2012).
624:. January 31, 2013. Archived from
25:
639:Duncan, Mallory B. (March 2013).
326:Robins Kaplan Miller & Ciresi
206:to write rules for swipe fees on
330:Robbins Geller Rudman & Dowd
355:This case is formally known as
235:prospective injunctive relief.
1:
376:List of class-action lawsuits
341:Willkie Farr & Gallagher
315:National Grocers Association
143:According to court filings,
973:
549:. NBC News. July 14, 2012.
71:Ongoing Legal Developments
915:Supplementary Information
417:Payment Card Settlement
198:financial reform bill.
724:. CNBC. Archived from
114:
942:Class action lawsuits
528:on November 12, 2012.
277:on November 7, 2019.
110:
668:on February 23, 2013
52:credit card industry
36:class-action lawsuit
920:Belegausgabepflicht
833:. February 22, 2019
805:on January 16, 2014
779:on January 16, 2014
351:Case name and venue
337:Arnold & Porter
285:Parties and counsel
34:is a United States
728:on April 10, 2013.
707:The New York Times
260:Independent expert
115:
112:Judge John Gleeson
647:on March 8, 2013.
628:on June 28, 2013.
572:. August 7, 2012.
16:(Redirected from
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928:(in German)
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809:January 14,
783:January 14,
307:Capital One
303:Wells Fargo
210:purchases.
952:Mastercard
936:Categories
382:References
239:Legal fees
208:debit card
200:Dodd-Frank
196:Dodd-Frank
153:Home Depot
139:Opposition
99:Settlement
44:Mastercard
947:Visa Inc.
672:March 12,
493:March 26,
450:March 26,
59:forward.
489:. Forbes
471:March 7,
370:See also
299:CitiBank
189:Wal-Mart
185:Best Buy
149:Wal-Mart
837:July 9,
622:CSP.net
364:duopoly
161:Safeway
589:Forbes
313:, the
305:, and
252:; and
222:Appeal
145:Target
87:Claims
413:(PDF)
118:Terms
839:2019
811:2014
785:2014
674:2013
495:2024
473:2024
452:2024
271:US$
187:and
179:The
40:Visa
30:The
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