Walmart Rejects $7 Billion Credit Card Settlement
By: Amanda Ashley
Updated: July 24, 2012
Walmart announced Tuesday it is opposed to the $7.25 billion settlement with Visa and MasterCard over credit-card processing fees. The Bentonville-based business issued a statement saying the offer leaves credit card companies with the power to continue to increase hidden swipe fees in the future. They are asking other retail stores to join their decision to reject the settlement.
Here's the full statement from Walmart:
"Walmart, along with a growing number of consumer groups and merchants, is disappointed in the proposed credit card interchange fee settlement. 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."
Here's the full statement from Walmart:
"Walmart, along with a growing number of consumer groups and merchants, is disappointed in the proposed credit card interchange fee settlement. 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."
