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Visa, MasterCard to pay over $6 billion to merchants in swipe fees case

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WASHINGTON — Credit card giants Visa and MasterCard agreed Friday to pay more than $6 billion to millions of merchants which had sued them for allegedly fixing card-use fees.

In a negotiated settlement to resolve the seven-year-old case, Visa agreed to pay $4.03 billion to settle the class-action lawsuit while MasterCard and banks that issue cards and were also part of the suit will pay $2.02 billion, according to documents filed in federal court in New York.

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The two will also have to cut their so-called “swipe” fees for eight months that could give the merchants another $1.2 billion in relief.

And they will have to allow merchants to impose a surcharge on credit card transactions, subject to a cap.

Law firm Robins, Kaplan, Miller & Cires, which represented about seven million merchants in the suit, said that penalties for the two and other card-issuing banks added up to $7.25 billion — $6.05 billion for past damages and the $1.2 billion for relief.

Also involved in the settlement are card-issuing banks including JPMorgan Chase, Bank of America, Citibank, Wells Fargo, Capital One and others.

Visa said its total payouts would be $4.4 billion, which appeared to include settlements from separate individual suits over the same issue that were not part of the class-action suit.

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“The reforms achieved by this case and in this settlement will help shift the competitive balance from one formerly dominated by the banks which controlled the card networks to the side of merchants and consumers,” said Craig Wildfang, lead Robins, Kaplan lawyer in the case for the merchants.

“Over time, the reforms induced by this case and in this settlement should help reduce card-acceptance costs to merchants, which in turn, will result in lower prices for all consumers.”

But in a reaction, American Bankers Association president Frank Keating blasted the idea that consumers will benefit from the deal.

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“Let’s be clear — retailers, not consumers, benefit from today’s resolution,” he said.

“This settlement even provides merchants with the ability to impose ‘checkout fees’ on customers just for using credit cards.”

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“Only time will tell if this history will repeat itself, as retailers continue to show little regard for consumers.”

“While the banking industry may not like all the results in this case, our industry is ready to put this matter behind us.”

Photo AFP/File, Nicholas Kamm


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Trump personally asked what ‘tanks’ could be used to break up George Floyd protests

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On Tuesday, The Daily Beast detailed how President Donald Trump himself has been behind the push to use the military to control the protests against the police killing of George Floyd — to the extent that he actually asked about specific military equipment that would be available for that purpose.

"[Defense Secretary Mark] Esper, along with other cabinet secretaries, stood next to the president during the remarks in the park after participating in an hour-long call with governors in which he said they needed to 'dominate the battlespace' to quell the protests," reported Erin Banco, Spencer Ackerman, and Asawin Suebsaeng. "But three senior Pentagon officials who spoke with The Daily Beast said they viewed the secretary’s comments on the call as a way to publicly show support for the president. They did not expect the department to actually implement a plan that would reflect the president’s rhetoric and force additional troops upon the states."

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FBI has ‘no intelligence’ Antifa was involved in Sunday’s violence at DC protests: report

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Attorney General Bill Barr and President Donald Trump have tried to blame Antifa -- or anti-fascists -- for violence in the protests against police injustice. But the public data has backed up their case, and even their on intel disputes the argument.

"he FBI’s Washington Field Office “has no intelligence indicating Antifa involvement/presence” in the violence that occurred on May 31, according to an internal FBI situation report obtained exclusively by The Nation. That same day, President Donald Trump announced on Twitter that he would designate Antifa a terrorist organization, even though the government has no existing authority to declare a domestic group a terrorist organization," Ken Klippenstein reported for the magazine.

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NYC protesters defy curfew — with a profane message for Mayor Bill de Blasio

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Protesters in New York City continued to march after 8 p.m. on Tuesday -- in open defiance of a curfew order from Mayor Bill de Blasio.

Jan Ransom, who covers courts and jails for The New York Times, posted video of protesters chanting, "f*ck your curfew."

Wonder what protesters think about @NYCMayor’s 8 pm curfew?

Just listen. pic.twitter.com/8H38XNGfQt

— Jan Ransom (@Jan_Ransom) June 2, 2020

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