Large US retailers sue Visa, MasterCard over card fees

Reuters: A group of US retailers including Macy’s Inc and Target Corp sued Visa Inc and MasterCard Inc, breaking off from a proposed US$ 7.2 billion settlement reached last year, over fees to process credit card transactions. The lawsuit was filed in the US District Court in Manhattan on behalf of many retailers that opted out of receiving proposed damages from the settlement.

That settlement, pending in federal court in Brooklyn, would end litigation on behalf of merchants that accused Visa and MasterCard of inflating so-called interchange, or swipe, fees. Among the other retailers named as plaintiffs in Thursday’s lawsuit are JC Penney Co Inc, Kohl’s Corp and TJX Cos. The lawsuit seeks compensatory and triple damages, as well as other remedies.