ALEXANDRIA, VA - Joining NACS, SIGMA and Target, Walmart announced this week that it too condemns the terms of the antitrust settlement with Visa and MasterCard that was announced on July 13.
"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. We believe the proposed settlement would also constrain emerging payments innovation. As Walmart continues to seek reform that will provide transparency and true competition among financial institutions, we encourage all merchants to put consumers first and reject the settlement," said a statement issued by Walmart.
NACS, a class plaintiff in the litigation, continues to hear from retailers and associations that they also reject the terms of the proposed swipe fee antitrust settlement. Because the proposed settlement does not introduce competition and transparency into the broken credit card swipe fee market, the NACS Board of Directors unanimously rejected the proposed settlement agreement. NACS was the first class plaintiff to reject the terms of the proposed agreement but expects that many of the other class plaintiffs will join NACS in the coming weeks.
NACS suggests that retailers proceed with caution in the coming weeks, especially if they get unsolicited sales calls that offer a cut of the settlement funds.
"We strongly recommend that retailers keep their options open before signing any agreements with third parties to obtain settlement funds. We will provide news and updates on a regular basis related to the terms of this proposed settlement and recommend that retailers do their due diligence in going forward," said NACS Senior Vice President of Government Relations Lyle Beckwith.
Beckwith also encouraged retailers to express their opinions regarding the terms of the proposed settlement via local media and in press releases: "Tell them that it€™s a bad deal and that this issue is far from over. The credit card companies want everyone to think that everything is settled even though merchants haven€™t had the chance to say what they think. Don€™t let them get away with it."
Share what you have done to communicate your opposition to the proposed settlement or share your comments by contacting Lyle Beckwith.