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NEW YORK — Target Corp., one of the biggest retailers in the country, joined groups including the National Association of Convenience Stores in opposing the proposed $7.25 billion settlement of a lawsuit brought by a group of retailers against Visa and MasterCard and a dozen large banks.
July 20 -
The credit card industry's proposed deal to settle long-pending retailer lawsuits set insiders chattering, divided over how much each side won and lost in the deal.
July 16 -
A trade group representing convenience stores rejected the proposed settlement of interchange lawsuits and hired law firm Constantine Cannon to hold out for better terms.
July 15
Wal-Mart Stores Inc. said July 24 that it takes issue with the
It joins other merchants, notably Target Corp., in their public opposition to the settlement. Visa, MasterCard and several large banks proposed to end a long-standing lawsuit by offering to pay over $6 billion and allowing merchants to add a surcharge to credit-card transactions. The National Association of Convenience Stores, a trade group that represents more than 3,700 merchants,
"Walmart, along with a growing number of consumer groups and merchants, is disappointed in the proposed credit card interchange fee settlement," the retailer said in an emailed statement. "The proposed settlement would not structurally change the broken market or prohibit credit card networks from continually increasing hidden swipe fees, which already cost consumers tens of billions of dollars each year. The proposed settlement would require merchants to broadly waive their rights to take action against the credit card networks for detrimental conduct or acts."
Wal-Mart concluded its statement by encouraging other merchants to reject the settlement.
In their original proposal, Visa and MasterCard expressed some optimism that merchants would be agreeable to the settlement.
The settlement "should resolve all issues with the merchant community," said Noah Hanft, MasterCard's General Counsel and Chief Franchise Integrity Officer, in a press release July 13.