SEATTLE (dpa-AFX) - MasterCard Inc. (MA) and its rival Visa Inc. (V) sued trade groups and retailers that rejected a $7.25 billion settlement over transaction fees for using credit and debit cards. The companies asked a court to rule that their fee practices were not illegal, a ruling that could limit the type of lawsuits retailers could bring against the companies in the future, according to the several reports.
MasterCard, Visa and several banks reportedly said in a complaint filed Friday in federal court in Brooklyn, New York, that their suit is 'necessary to prevent the continuation of endless, wasteful litigation.'
Several large banks, including Bank of America Corp. (BAC), Citigroup Inc. (C), and J.P. Morgan Chase & Co. (JPM), also were named as plaintiffs in the new complaint. The complaint was filed against the National Association of Convenience Stores, National Association of Truck Store Operators, National Grocers Association, National Restaurant Association, D'Agostino Supermarkets Inc. and other parties.
Meanwhile, Merchant trade groups alleged that the class action settlement would do nothing to prevent Visa and MasterCard from continuing to raise interchange fees. Some retail giants also announced their opposition, citing terms that would bar class members from pursuing future litigation against the credit card companies.
MasterCard, Visa and a number of U.S. banks agreed in mid-July to a $7.25 billion settlement for a long running merchant class litigation brought by a class of U.S. retailers, who claimed that the defendants conspired to illegally fix the 'swipe' fees that merchants pay to accept credit and debit cards.
A May 28 deadline to opt out of the settlement has resulted in a flurry of opt-out notices and statements from large and small retailers in recent days.
On Thursday, Target Corp. (TGT), and other retailers, including Macy's Inc. (M), Saks Inc. (SKS) filed a lawsuit against Visa and MasterCard alleging antitrust behavior.
Earlier in this week, Wal-Mart Stores Inc. (WMT) and other major retailers, including Starbucks Corp. (SBUX) and Gap Inc. (GPS) said they intended to opt out of the settlement and might bring additional litigation against the payment networks.
Visa, MasterCard and the banks agreed to pay $6.05 billion to a class that could include eight million merchants and temporarily reduce interchange fees by an amount equal to $1.2 billion.
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