Quick summary of the Visa and MasterCard class action lawsuit
Posted on Wednesday, January 03, 2007
I think that nearly everyone has heard one thing or another about the lawsuit against Visa and MasterCard. If you didn’t ever understand what it was all about, here is a brief explanation. In early 2000, merchants from all over the U.S. claimed that Visa and MasterCard’s “Honor All Cards” policies unfairly required them to accept signature debit card transactions at supracompetitive prices. (Visa and MasterCard’s signature debit products are also referred to as Visa Check, MasterMoney or Debit MasterCard.) Merchants also claimed that Visa and MasterCard were attempting to monopolize the debit card business in the United States. In April 2003, just as the trial was about to begin, Visa and MasterCard settled with the plaintiffs’ Class.
Or in other words, Merchants were upset that they were paying the same fees for both credit and debit cards. The case was settled for an amount somewhere between $25 and $87 billion.
