Visa, MasterCard, Bank of America, Citibank, Bank One, Chase Manhattan Bank, JPMorgan Chase, Fleet Bank, CapitalOne and other major banks have been named as defendants in an antitrust class action filed on behalf of a group of small businesses alleging the banks illegally fix the price of credit card transaction fees.
The lawsuit, filed by the law firm Robins, Kaplan, Miller & Ciresi L.L.P, seeks injunctive relief to stop the alleged anticompetitive practices plus damages.
At issue are the alleged practices by the defendants that cause merchants to pay �exorbitant� fees for the acceptance of credit card payments.
“Merchants have little or no ability to negotiate with Visa and MasterCard for lower interchange fees, and these fees are a ‘hidden tax’ that raise prices paid by consumers for almost every product they buy,” K. Craig Wildfang, a partner at Robins, Kaplan, Miller & Ciresi L.L.P., who represents the plaintiffs, said. “Due to Visa and MasterCard’s market power, the United States has the highest credit card interchange fees among industrialized countries.�
MasterCard issued a statement Thursday saying: �the lawsuit is misguided, and MasterCard looks forward to defending interchange, which is necessary for the operation of a four-party system and has been found lawful, efficient, and pro-competitive.�
Wildfang noted: �Regulatory authorities in many other countries, from the European Union to Australia, have recently adopted measures to reduce interchange fees, but in the United States, it will take action by the courts to accomplish this.”
On the web: http://www.mastercardintl.com/cgi-bin/newsroom.cgi?id=1039.
(via PR Newswire)
7 responses so far ↓
Felicia Johnson Stevens // Aug 18, 2005 at 9:13 pm
Recently I obtained a credit card from a mastercard company called GOLD MASTERCARD. Before I could purchase a item or even activate the card I was aready in debt with this company. Maybe I did not read the small writting in detail or maybe I should have hired a lawyer to repersent me just to file a simple application out. But it seem to me that a small person like myself should be considered when these big companies form all these fantsy words to rob the very fibers of society. ME
Phill // Aug 30, 2005 at 8:40 pm
I can;t believe how the banks are going down in their business practices. I see the time where the banks are going to buckle. Not right away but later. We the consumers need the rights that needs to be defended. If anyone who voted republican and for Bush needs to be bankrupt. I am delighted to tell you this. This high prices on credit cards and gas will eventually buckle. mark my words!!!!!!!
Hugo A. Villegas // Sep 3, 2005 at 5:27 am
If anyone knows about a class action law suit by consumers against banks for charging exhorbitant fees and manipulating the date on ehich to post charges to create overdrafts. I would be very happy to join.
Gabriel Fernandez // Sep 27, 2005 at 3:36 pm
PLEASE…If anyone knows where I can get an electronic copy or even a hard copy of the new (sept/2005)antitrust lawsuit filed by the National Association of Convenience Stores, the National Association of Chain Drug Stores, the National Community Pharmacists Association and the National Cooperative Grocers against Visa USA, Mastercard Inc. and dozens of major US banks, saying they colluded in setting excessive credit card fees; I would very much appreciate any information on how toget such lawsuit for my personal study.
Joe O'reilly // Sep 29, 2005 at 6:18 am
I don’t like banks i put my money in my old shoe box and then i won’t lose it again like in 1931. Banks steal money and so do taxes
Katie Blane // Sep 29, 2005 at 8:33 pm
Banks have to charge these fees for their service. They also provide the creditcard terminals for these merchants..when these systems go down..someone has to get paid for their service. It’s a service.
Katie Blane // Sep 29, 2005 at 8:45 pm
Also, this service includes helping a merchant get their daily transactions and reporting. This cost $$$. It also includes processing..making sure the money is in the card holder’s account..this cost $$ as this is a huge system to generate. This service includes training the merchant and their emplaoyees on their terminal. People want everything for free these days. Unfortunelty, this country is increasing in debt and have to use their credit cards for purchases..this is not a free service on the merchants end.
By the way, this law suit does not have anything to do with Credit Card issuing (to card holders)companies..sorry! Thats a whole other ball game my friend.
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