Visa and Mastercard agree $7.25 billion fees dispute settlement
July 15 , 2012
Credit card companies Visa and Mastercard have agreed to a $7.25 billion settlement to retailers over card fees.
The settlement also involves major U.S. banks which issue their cards including JPMorgan Chase, Bank of America and Citibank.
The case has been going on for seven years and involves companies working together to fix the fees that stores pay to process credit and debt card payments.
It involves a $6 billion payment to stores and an agreement to reduce swipe fees for eight months, valued at $1.2 billion.
An additional $525 million has been set aside to pay to the stores that sued individually, such as grocery chain Safeway and the Rite Aid pharmacy group.
The settlement is said to be the largest of its kind in American history.