NEW YORK (TheStreet) -- Wal-Mart is suing Visa for $5 billion for allegedly conspiring with banks to illegally fix and inflate credit card swipe fees that the credit card company charges retailers.
Wal-Mart said Visa's swipe fees not only violate antitrust regulations, but have cost U.S. retailers and shoppers more than $350 billion. The swipe fees pertain to charges credit card companies impose on retailers whenever a customer pays with a card.
Wal-Mart has been involved in litigation against Visa in the past over swipe fees. Visa and MasterCard (MA) reached a settlement with various retailers in July 2012 in which the companies agreed to pay up to more than $7 billion and lower their fees. However, Wal-Mart, as well as Target (TGT) and Amazon (AMZN), opted out of the settlement.
No confirmation yet as to whether Wal-Mart will seek legal action against MasterCard as well.
In New York, I'm Brittany Umar for TheStreet.
Written by Brittany Umar in New York.