STRATEGIC PARTNERS
April 29, 2003
NEW YORK -- Before the dust had settled from MasterCard International's surprise settlement with merchants in a high-profile case over debit fees, the New York federal court judge presiding over the trial said that co-defendant Visa U.S.A. is in talks to resolve its dispute with retailers as well.
According to a Reuters report, Judge John Gleeson of the U.S. District Court for the Eastern District of New York in Brooklyn addressed the court shortly after opening statements were on April 30, saying he would grant a request by Visa and the retailers for more time to engage in settlement talks.
"There are serious settlement talks going on with Visa right now," Lloyd Constantine, a New York-based lawyer representing retailers said through a spokesman.
The news comes two days after MasterCard reached a settlement with retailers. (See related storiesMasterCard settles in debit case andDebit settlement reportedly will cost MasterCard $1 billion)
The Visa trial has been adjourned until May 2.
Constantine also said the retailers are finalizing their agreement with MasterCard to present to Gleeson for approval within the next few weeks.
While details of the MasterCard settlement have not been made public, Reuters cited a "person familiar with the matter" as saying it will include a $1 billion payment and a lowering of interchange fees. MasterCard would also ease its "honor all cards" policy that requires retailers who accept MasterCard's credit cards to accept its debit cards, the person told Reuters.
Any settlement with Visa is likely to be worth more, as it controls about twice the debit market as MasterCard. Gleeson had also previously ruled that Visa had market power, something that he said was inconclusive with regard to MasterCard.
