Wal-Mart snubs deal with Visa and Mastercard
by May 21, 2013 5:35 pm 99 views
Wal-Mart Stores Inc. is one of 19 retailers opting out of a $7.25 billion antitrust settlement with Visa and MasterCard over fees charged to merchants for processing credit-card transactions.
The Bentonville-based retailer released a statement on their position in July, which has not changed: The retailer remains disappointed in the antitrust settlement saying the deal encourages merchant rejections.
“It would allow credit card companies and big banks to perpetuate an unfair and broken system that costs all consumers,” Mike Cook, senior vice president of finance for Wal-Mart, said in a statement.
The settlement, estimated to be the largest-ever U.S. antitrust accord, has drawn criticism from trade associations and retailers contending that it grants the card companies too much leeway to raise rates.
The National Retail Federation said Tuesday (May 21) it will oppose the settlement because it gives the card companies “legal blessing to continue their abuse of merchants and consumers indefinitely.”
Gap Inc., Lowes, Costco and Nike are among the retailers also rejecting the settlement.