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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