Credit Card Settlement Could Be Costly for Banks
Updated from 1:50 p.m. EDT
The $3 billion settlement of an antitrust lawsuit filed against Visa USA and MasterCard over debit card payments is good news for retailers, but bad news for banks and data-processing companies.
The settlements, announced this week, mark an end to a long-running battle between the nation's merchants and two big credit card associations. The deals, which must still be approved by a federal judge, were negotiated just days before the class-action lawsuit brought by Wal-Mart(WMT Quote), Sears(S Quote) and other retailers was slated to go to trial.
Under the separate settlements, the nation's retailers will receive payments totaling $2 billion from Visa and $1 billion from MasterCard. The payments will be spread out over 10 years. ...
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