Visa and MasterCard Sued

Several U.S. retailers, such as Target (Minneapolis) and Macy’s (Cincinnati), have sued Visa Inc. (Foster City, Calif.) and MasterCard Inc. (Purchase, N.Y.) over reportedly inflated fees to process credit card transactions, breaking away from a proposed settlement of $7.2 billion, which was reached last year, Reuters reports.

The lawsuit was filed last Thursday in U.S. District Court in Manhattan and came before the settlement’s May 28 deadline, when millions of retailers were supposed to choose whether to accept damages or pursue their own legal action. The settlement would end merchants’ litigation against the credit card companies regarding their “swipe-fees.”

Many retailers were unhappy with the settlement that was first announced in July 2012, according to Reuters, because in addition to not providing enough compensation, they believe signing the broad litigation could have shielded Visa and MasterCard from future lawsuits or litigation against them. Even though several retailers have opted-out, they could still be bound by “injunctive relief” if the settlement does go through court, as well as any changes MasterCard or Visa makes to its swipe-fee regulations, Reuters reports.

Some other retailers seeking justice include JCPenney (Plano, Texas), Kohl’s (Menomonee Falls, Wis.) and TJX Cos. (Framingham, Mass.), according to Reuters.