Tags: walmart | sues | visa | 5 billion

Wal-Mart Sues Visa for $5 Billion Over Too-High Card Swipe Fees

Image: Wal-Mart Sues Visa for $5 Billion Over Too-High Card Swipe Fees

Friday, 28 Mar 2014 03:13 PM

By Morgan Chilson

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Wal-Mart has filed a lawsuit against Visa for $5 billion, accusing the credit card company of working with banks to illegally fix the rates that are charged in-store when customers swipe their cards.

Wal-Mart contends that the fixed prices cost the company $5 billion. The case was filed as a federal antitrust case, which allows the retail giant to ask for damages of $15 billion, CNN said.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Swipe fees are charged by credit companies to retailers, and occur whenever a customer uses a credit card.

In a previous anti-trust lawsuit, which settled in 2012, Mastercard and Visa agreed to forfeit more than $7 billion to 7 million retailers named in the suit, and at that time agreed to conditions that would, among other things, reduce swipe fees paid by merchants.

But some retailers, primary large companies, weren’t happy with the conditions on that settlement and chose to pull out. Wal-Mart, Target, Macy’s Inc., and Amazon were four that did so.

Wal-Mart’s latest legal maneuver in a court battle that’s lasted eight years was made in U.S. District Court in the Arkansas’ Western District.

The lawsuit between two of the largest companies in the country hinges on the accusation that Visa, along with other credit card companies, sets fees at too high of a level because there is no competition, Fox Business News said. Wal-Mart and others that chose not to settle also said the 2012 agreement didn’t address the likelihood that credit card networks would raise fees later or whether Visa and others would require companies to waive rights to sue, Fox said.

Visa has maintained that company practices are not anticompetitive.

In the lawsuit, Wal-Mart also said Visa has harmed credit card security by failing to update to cards that use computer chips and PINs, which are safer than the magnetic strips used currently, Fox said.

Editor's Note: Do You Support Obamacare? Vote in Urgent National Poll

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cambodia HIV Outbreak: 100-Plus People Diagnosed; Investigation Sought

Friday, 19 Dec 2014 18:50 PM

More than 100 HIV infections in a single Cambodian village have spurred the country's prime minister to ask for an inves . . .

Slender Man Case: Two Girls Competent to Stand Trial in Stabbing

Friday, 19 Dec 2014 18:26 PM

Two girls who allegedly stabbed a 12-year-old friend over the online game Slender Man are competent to stand trial for a . . .

Kate Upton Sexiest Woman Alive; Model Apologizes to Teen Brother

Friday, 19 Dec 2014 17:52 PM

Model Kate Upton was selected as People magazine's first Sexiest Woman Alive, a month after Chris Hemsworth received the . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved