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Visa says it will prepay settlement funds in 'Wal-Mart' fee case, if court approves
September 3, 2009
Digital Transactions reports that Visa Inc. is expected to prepay $682 million of its $800 million settlement obligations with merchants under the Wal-Mart debit-card class action suit. If the court approves, the prepayments from both Visa and MasterCard Worldwide, totaling $1.02 billion, would end one of the most litigious battles between merchants and card networks over the fees associated with merchant acceptance of payment cards.
Digital Transactions reports that Visa is expected to make its $682 million payment on Sept. 30, or the day after the U.S. District Court in Brooklyn, N.Y., approves the plan. If the prepay plan is not given the thumbs-up by the court, Visa will have to make four more annual payments of $200 million, with the final payment scheduled for Dec. 22, 2012.
Visa told Digital Transactions it was happy to have reached an agreement with the merchants for a prepay settlement:
We believe this agreement is in the best interest of the company and its shareholders.
The settlements stem from 1996 class-action lawsuit filed by retailers upset about the cost of accepting debit cards. The lawsuit became known as the "Wal-Mart case" because of the participation of Wal-Mart Stores Inc.
Transaction ProcessingRegulation / LegislationEFT NetworksDebit / CreditNorth AmericaPublic Companies
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