Distributors May Benefit from Proposed $7.5 Billion Bank Settlement
Visa, MasterCard and major-card issuing banks have reached a proposed settlement with 7 million merchants, including wholesale distributors, over credit-card swipe fees.
Merchants who accepted Visa or MasterCard payments any time since Jan. 1, 2004, may benefit from the $7.5 billion settlement, the NAW reports.
As part of the settlement, the banks and card companies would pay a total of $6.05 billion, plus agree to reduce card-interchange fees for eight months, a practice merchant lawyers value at $1.2 billion. Additional payments will be made to twenty-two companies who filed separate nonclass action suits against the defendants.
Visa and Mastercard would also change their rules to allow merchants to impose a limited surcharge to customers purchasing with credit cards, provided the merchant makes required disclosures to customers.
Merchants eligible to participate in the settlement will be notified in late 2012 or early 2013.
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