Wal-Mart Urgest Retailers To Reject $6 Billion Settlement With Visa, MasterCard
Wal-Mart, the world's biggest retailer, says its peers should reject the $6 billion settlement reached over fees charged on credit card purchases.
As we reported, Visa and MasterCard agreed to pay more than $6 billion to settle complaints from retailers that it prohibited them from imposing surcharges on customers using those cards. Those complaints have existed for years.
The AP reports:
"The world's largest retailer said Tuesday that the settlement doesn't restrict credit card issuers from continually raising fees merchants must pay when shoppers use their cards. The Bentonville, Ark., company also says the settlement would require retailers to waive their rights to take action against card issuers.
"'As Walmart continues to seek reform that will provide transparency and true competition among financial institutions, we encourage all merchants to put consumers first and reject the settlement,' Wal-Mart said in a statement."
The settlement did indeed lift the restrictions on surcharges but it also limited the "level and circumstances in which they may impose checkout fees on a cardholder which are designed to avoid unfair, unexpected or exorbitant fees."
Forbes says that Wal-Mart's objection puts the settlement in limbo.
Perhaps the biggest loser says Forbes is the law firm that helped craft the deal, which was about to have a massive pay day.