Walmart, Target Join Opposition To Interchange Settlement
Walmart on Monday announced its opposition to a proposed $7.25 million interchange fee settlement offered by Visa, Mastercard and 13 large banks on July 13.
“Walmart, along with a growing number of consumer groups and merchants, is disappointed in the proposed credit card interchange fee settlement,” a statement form the Bentonville, Ark.-based mega-retailer says. “The proposed settlement would not structurally change the broken market or prohibit credit card networks from continually increasing hidden swipe fees, which already cost consumers tens of billions of dollars each year.
“The proposed settlement would require merchants to broadly waive their rights to take action against the credit card networks for detrimental conduct or acts. We believe the proposed settlement would also constrain emerging payments innovation. As Walmart continues to seek reform that will provide transparency and true competition among financial institutions, we encourage all merchants to put consumers first and reject the settlement.”
Target Corp. has announced its opposition as well. In a July 20 statement, the Minneapolis-based company says, “Target believes the proposed interchange fee settlement is bad for both retailers and consumers. The proposed settlement would perpetuate a broken system, restrict retailers from any future legal action and offer no long-term relief for retailers or consumers.
“In addition, Target has no interest in surcharging guests who use credit and debit cards in order to allow VISA and MasterCard to continue charging unfair fees. We will continue to explore our options while working toward a solution that represents true reform.”
Target joins the National Association of Convenience Stores (NACS), a plaintiff in the suit, and other organizations opposing the settlement. Target Corp. and Walmart are not among the plaintiffs.