Visa, MasterCard settlement deal gets preliminary approval

Despite opposition from the National Retail Federation and retail groups like Walmart and Target, US Judge John Gleeson has given preliminary approval to Visa and MasterCard‘s $7.25 billion interchange settlement deal.

In order to end a seven-year legal dispute over interchange fees, the settlement was agreed to in July, with retailers securing a multi-billion dollar cash payment and significant reforms of Visa and MasterCard rules and business practices.

However, opposition has been voiced over concerns that if the case went to trial a judgement could be worth billions. According to Hank Armour, president and CEO, National Association of Convenience Stores: “We remain convinced that this is a bad deal and we will look at our options to appeal this decision. This bad deal should not be forced upon the vast majority of merchants and – their customers – who do not want it.”

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