Visa, Mastercard, major banks facing new litigation over 'anticompetitive' fees (classaction.org)

Article summary

A class action lawsuit has been filed against Visa, Mastercard, and several major banks, alleging that they have conspired to artificially inflate merchants' credit card transaction fees. The lawsuit claims that the defendants have maintained a conspiracy to set uniform schedules of interchange fees, which has disabled market forces and allowed them to raise their fees without consequence. The suit seeks to represent all individuals and businesses that have accepted Visa-branded and/or Mastercard-branded credit cards in the United States from January 25, 2019, onwards. The lawsuit alleges that the defendants' anticompetitive practices have resulted in merchants paying over $100 billion annually in fees.

Main themes

• credit card fees
• anticompetitive practices
• payment systems
• regulation
• consumer protection
• alternative payment methods

What commenters say

• The high fees charged by Visa and Mastercard are a result of their anticompetitive practices, which prevent merchants from negotiating better rates.
• The credit card companies' business model is based on charging high fees to merchants, which are then passed on to consumers in the form of higher prices.
• Allowing merchants to offer discounts for cash or alternative payment methods could help to reduce the fees charged by credit card companies.
• The rise of alternative payment systems, such as PIX and UPI, could potentially disrupt the dominance of Visa and Mastercard and lead to lower fees for merchants.
• Some commenters argue that the high fees charged by credit card companies are a necessary cost of doing business, and that merchants should focus on finding ways to absorb these costs rather than trying to change the system.
• Others argue that the credit card companies' practices are unfair and that regulators should take action to protect merchants and consumers.
• The use of credit cards provides consumers with certain protections, such as the ability to dispute charges, which may not be available with alternative payment methods.
• The development of new payment systems, such as pay by bank, could provide an alternative to credit cards and help to reduce fees for merchants.