Take Charge- Managing Credit Card Costs Behind the Scenes
By Natalie Hope McDonald
Several years ago, Wal-Mart filed suit against Visa and MasterCard seeking $8.1 billion in damages for alleged debit card antitrust violations. The suit accused the card companies of dominating the debit card business, forcing retailers to accept certain cards while paying high transaction fees. The suit also accused credit companies of charging retailer processing fees up to five-times higher than those charged for traditional bank debit cards.
In the end, Visa and MasterCard settled for $3.5 billion, thus opening up a series of subsequent suits, one brought by PSW, a credit card processing company for online merchants, just last year.