The card networks contend Walmart and trade groups want to scuttle a legal pact over card swipe fees using recycled arguments the court has rejected.

“Rather than offering any factual or legal basis why the Court should revisit and reverse its findings at preliminary approval, the objections merely reprise the same arguments this Court already considered and rejected,” Visa and Mastercard wrote in their support of final court approval.

The class counsel representing merchants also filed their reply to the merchants’ objections, on Wednesday, but they did so under seal. U.S. District Judge Brian Cogan told the lawyers to articulate by Monday proposed redactions to the filing so he could assess any need for confidentiality against the right of public access.

The class lawyers and networks’ attorneys reached the proposed settlement a year ago, with Cogan granting it preliminary approval in June, finding it superior to a 2024 settlement the court rejected. The litigation dates to 2005.

The latest settlement would trim credit interchange rates by 10 basis points for five years and impose a 1.25% rate for standard consumer cards for eight years. It would also give merchants the right to decline some higher-cost branded Visa and Mastercard premium and commercial credit cards. That would be a departure from the networks’ “honor all cards” rule requiring merchants to accept all cards from the networks if they accept any cards.

35% fee, on average, on Visa and Mastercard transactions, according to industry research organization Nilson Report last year.

Source link