MasterCard Inc , Visa Inc and other banks which issue their credit cards have agreed upon a $7.25 billion settlement with the retailers in the US. This could well be the largest anti-trust settlement in the history of US, as per the market experts.
The settlement, if it goes through, could resolve a large number of lawsuits that have been based around the fixing of debit card and credit card fees that been filed by the retailers. This comes after a large number of media agencies reported the news after the filings for the settlement were made in a federal court in Brooklyn.
The above mentioned settlement must be approved by a judge. According to the media reports, the proposal of settlement involves paying to a class of stores an amount of $6 billion from MasterCard, Visa and another dozen banks which have been issuing the cards of these companies.
In addition to this, the card companies have agreed upon reducing the swipe fees which is the equivalent of 10 basis points for 8 months as a total consideration to the stores, valuing it at about $1.2 billion, according to the lawyers for the plaintiffs.
An additional amount of $525 billion will be paid to the stores that have sued the 2 firms individually.