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Supreme Court action allows ATM industry's antitrust case against Visa, MasterCard to proceed

November 22, 2016

The U.S. Supreme Court's dismissal of an appeal by Visa, MasterCard and big banks to block antitrust litigation against the global networks brings the ATM access fee issue one step closer to a final conclusion.

In a 2011 action filed in the U.S. District Court for the District of Columbia, the National ATM Council and individual ATM providers claimed that Visa and MasterCard network rules unlawfully prohibited ATM operators from charging lower fees for transactions over PIN-debit networks not affiliated with Visa or MasterCard.

The plaintiffs argued that the network rules amounted to price-fixing, artificially inflating consumer fees for ATM transactions, limiting ATM operator revenue and violating stipulations of the Sherman Antitrust Act prohibiting unreasonable restraints of trade.

In addition to the NAC case, two additional class action cases were later filed against the card associations on behalf of consumers.

The three cases were later joined for consideration of a motion to dismiss filed by the defendants, which ultimately was granted.

NAC appealed this ruling to the U.S. Circuit Court for the District of Columbia, seeking reinstatement of the case for trial. That court ruled unanimously in favor of the plaintiffs and the case was scheduled for trial before D.C. District Court Judge Richard Leon.

However, before the case could proceed, the defendants filed a petition for certiorari by the U.S. Supreme Court. This was granted, but the dismissed on the grounds that the defendants had improperly expanded upon their arguments in the previous trial.

The Supreme Courts summary dismissal has the effect of clearing the way for the original antitrust to proceed, and for proceedings on pending motion by the NAC for an injunction against network rules imposed by Visa and MasterCard.