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Visa, Mastercard Settle Swipe Fee Lawsuit for $6.2 Billion
Jessica Puckett
Contributor
Sept. 18, 2018
•
2 min read
Visa, Mastercard Settle Swipe Fee Lawsuit for $6.2 Billion
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Visa, Mastercard and several major US banks on Tuesday finally settled a 13-year-old class action lawsuit with retailers across the country, which accused the credit card companies of fixing prices of card swipe fees to benefit the banks.
The $6.2 billion settlement is reported to be the largest antitrust settlement in history.
The class action suit was first filed in 2005 when both Visa and Mastercard were owned by banks, Bloomberg reports. Retailers accused them of illegally elevating the swipe fees that all merchants pay when a customer makes a purchase via card. Said fees help banks finance cardholders' credit card rewards. Inflating the fees in such a manner would break US antitrust laws.
A federal judge first approved a $5.7 billion settlement for the suit in 2013, but it was later overturned upon appeal. The new settlement amount adds on about $900 million more from the credit card companies and is still awaiting final approval from the court, CNN says. According to company filings, Visa will pay an additional $600 million of the new settlement, and Mastercard will pay $108 million more.
For their part, the credit card companies seemed eager to finally put the drawn-out legal proceedings to bed. "After years of thoughtful negotiation, we are pleased to be able to reach this agreement and move forward in our partnership with merchants to provide consumers convenient, reliable, secure ways to pay," Visa's General Counsel Kelly Mahon Tullier said in a statement.
Likewise, General Counsel for Mastercard Tim Murphy said the company "can put this behind us and focus on continuing to innovate with our merchant partners to deliver the experience and convenience that consumers expect."
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Best for businesses with high spending
TPG Editor‘s Rating
Go to reviewCard Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
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Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
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The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
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- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
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- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month