NATSO rejects settlement with credit card providers

| September 12, 2012

NATSO, the national association representing the travel plaza and truck stop industry, announced that it has joined others in rejecting a proposed settlement of an antitrust lawsuit brought by merchants, including NATSO, alleging that Visa, MasterCard and national banks collude to set artificially high swipe fees.

“After careful consideration, NATSO’s executive committee determined that the settlement would not be in the best interest of merchants, including NATSO members,” said Lisa Mullings, NATSO president and chief executive officer. “We joined this lawsuit in search of real reform to a broken system, one that is shielded from normal competitive forces. This proposed settlement does not achieve this goal. It lacks meaningful fixes to a system that allowed Visa and MasterCard to set artificially high swipe fees and provided retailers and consumers with no choice except to pay.”

Mullings said that rather than offering effective long-term relief, the settlement ironically would cost merchants and consumers more. “Aside from a temporary lowering of fees, the credit card companies will be able to simply hike swipe fees to recover the damages and legal fees they have agreed to pay,” she said. “In other words, retailers will pay for their own award. Worse, in exchange for this so-called relief, the settlement contains a broad release of future claims, sharply curtailing the ability of retailers to take legal action in the future.”

Mullings said the proposed settlement would disappoint retailers “hoping for real reform to America’s flawed credit card system. It leaves intact the ability of credit card companies to set inflated fees for all banks in their network. And if merchants accept the proposal, Visa and MasterCard will operate without the threat of future litigation.”

  • BP

    Well it about time someone addressed the issues with the credit card companys and there unfair practices like giving you a rate of 6.9 % until someone puts something on your credit record weather it is true or not gives them the right to raise your interest rate to a default rate of 29.9%. Something like a divorce and child support gives them the right to screw you? Credit cards should be the same as a fixed loan! They should have to tell you before rasing your rate so that one has the option to stop using the card and pay it off at the rate it was isseued! They get you coming or going as if you use it to pay for fuel it could cost you as much as .15 cents a gallon. My opion is the whole banking sustem needs a seriuos overhaul!

  • http://www.facebook.com/edward.owen.520 Edward Owen

    I agree the banks have been out of control for a long time. They are not satisfied with making a reasonable profit. No, they want it all. I had good credit with low interest rates until I took out a loan to buy a van. Then; Bang! My credit card interest went through the roof. I called them and couldn’t get it changed back. Their reasoning was that it looked like I was having financial trouble because I took out a loan. No how stupid is that?
    I would like to have a bank executive hire me to do some work for them so I could turn it back on them. They are worse than criminals and on the same level as oil executives.
    We need to put a leash on all of them. Then you will see the economy improve and the crime rate come down.
    I might mention this also. This week the Goverment put some money out to help boost the economy. Well you know what happened next. The oil companies raised the price of gas and diesel. So who got the boost?

  • Level Headed

    Radical change is required. For any merchant who accepts plastic, the prices overall are artificially high, we pay the difference, and the banks and credit card companies pocket that amount. To fix this, all credit card fees should be added as a line item to each bill at the point of purchase. The consumer can decide if the convenience is worth the cost. Since the beginning, customers who prefer to pay with currency have been subsidizing credit card customers.