Big stores nix credit card settlement, file suit

AP News
Posted: May 23, 2013 3:47 PM

NEW YORK (AP) — Some of the country's largest retailers, including Target Corp. and Macy's Inc., are suing MasterCard and Visa, rejecting a settlement over alleged fee-fixing.

A larger group of 19 trade associations and retail companies originally filed suit against the card processing companies in 2005, claiming that they conspired to fix the fees they charge stores for handling payments made with credit cards.

A $7.2 billion settlement was reached in July, but some retailers rejected it, partially because it includes a provision barring retailers from filing future lawsuits over swipe fees. Some retailers also have argued that the settlement amount was far less than what they might have won at trial.

TJX Cos., Office Depot Inc., Kohl's Corp., Abercrombie & Fitch Co. and other retailers are also part of the new suit.