NEW YORK – Independent ATM operators on Wednesday filed suit against Visa and MasterCard, accusing the card companies of fixing prices and forcing them to charge consumers set fees.
A lawsuit filed by the newly formed National ATM Council and 13 operators of ATMs in nine states claims Visa and MasterCard require them to agree to contracts that prevent them from charging less when consumers use cards that can access networks other than those belonging to the two networks.
The independent Cardtronics network is the largest ATM operator in the country and its 33,000 cash machines are a key switch to credit union EFT networks CO-OP Financial Services, Credit Union 24 and Financial Service Centers Cooperative.
The new lawsuit claims Visa and MasterCard force independent ATM operators to charge consumers the same fee all the time, even when their cards can access smaller networks that are cheaper for the ATM operators to use. If ATM operators could charge those customers lower fees, consumers would start asking their banks for cards equipped to use the cheaper networks.
“The ATM restraints prevent ATM operators from offering their customers a discount or benefit for completing a transaction over a network that is less costly to the ATM operator, so consumers cannot be rewarded for using a lower cost and more efficient network,” the lawsuit states.
The suit, filed in U.S. District Court in Washington, seeks “tens of millions of dollars” in damages and compensation for violations of antitrust laws.
The allegations were made by the National ATM Council Inc., a trade group based in Jacksonville, Florida, and 13 operators of ATMs in nine states.
