9 Events in the Swipe-Fee Courtroom Saga
Published June 2, 2013 12:32 PM
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Updated October 20, 2016 11:02 AM
1 Min Read
(Image: ShutterStock )
In the Beginning
The current swipe-fee antitrust case in front of Judge John Gleeson in New York has its roots in a July 2005 federal court decision in California to dismiss a merchant lawsuit challenging interchange. In October of that year, a panel transferred the complaints to Gleesons court. (Image: ShutterStock )
A Settlement Is Reached
Seven years later, the lawyers representing the plaintiffs worked out a $7.25 billion settlement with the card brands, which also agreed to lift merchants surcharging restrictions. (Image: ShutterStock )
Eugene Bochkarev
Merchants Lash Out
In October 2012, after Gleeson granted preliminary approval of the settlement, merchant appeals began in earnest. Most of the objectors bristled at the stipulation against future lawsuits, and said the card networks' fee rules remained unchanged. (Image: ThinkStock)
Dmitriy Shabanov/Getty Images/Hemera
Free to Fee
At the start of this year, one of the card brands' concessions kicked in: the ability for merchants to charge fees to consumers for using credit cards. (Image: ThinkStock)
Websites Face Scrutiny
In April 2013 Gleeson threatens a contempt ruling against retailer websites for failing to correct inaccurate information about opting out or objecting to settlement. Gleeson eventually ruled associations were not in contempt. (Image: ShutterStock )
Daniel Acker/Bloomberg
Fresh Targets
Target and Macys filed suits just prior to May 28 deadline for merchants to either opt out or object to settlement, but filed it in another New York district court. Their filing alleged that the settlement amount was too generous to the card brands and allowed too much leeway to raise fees in the future. (Image: Bloomberg News)
NORM BETTS/BLOOMBERG NEWS
Card Networks Respond
Visa and MasterCard subsequently filed a suit in Gleeson's court against the retailers and trade groups rejecting the settlement, asking the judge to declare the card brands system for setting interchange fee as a legal process. (Image: Bloomberg News)
Objectors Counted
More than 500 merchants filed objections to the deal by the court-mandated deadline. Of the nations top 100 retailers, 36 had come out against the settlement. (Image: ShutterStock )
What Happens Next
The final approval hearing on the settlement on Sept. 12 remains the key date that could potentially end an 8-year payments industry battle over interchange. (Image: ShutterStock )
