Visa, MasterCard facing more interchange lawsuits

Visa and MasterCard are facing more merchant interchange fee lawsuits.

Just when it seemed that the credit card processing fee lawsuits against Visa and MasterCard were coming to an end, the processes is starting again. Previously, a large group of retailers had come together and filed a lawsuit against the card companies over processing fees. A settlement was reached in 2012 and a $5.7 billion final settlement was approved by a judge in December of 2013.

However, a large portion of the merchants involved in the suit rejected the settlement and pulled out, looking to re-file. Now, according to an article from Bloomberg, Visa and MasterCard are facing more than 30 new suits that have been filed by some of the top merchants in the country including Target, Wal-Mart and Macy's. These suits just overcame their first hurdle, as the card companies lost their initial bid to have them tossed out.

According to U.S. District Judge John Gleeson, who made the ruling, the decision to not dismiss was "in large part driven by the requirement that I accept all well-pleaded factual allegations as true because the cases were in the early stages of litigation. It isn't a ruling on the merits of the complaints."

Lawyers from both both card companies released brief statements that said these suits were still in their early stages and the businesses were looking forward to finally ending this litigation.

As before, businesses are going to need to pay attention to the outcome of these lawsuits as they will impact merchant interchange fees, which is something every company needs to deal with.

by Ty Hardison

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