Federal Judge Margo Brodie has temporarily halted Visa and Mastercard's $30 billion settlement with merchants, casting uncertainty over its approval. The settlement seeks to resolve a 2005 lawsuit accusing the payment giants and their banks of antitrust violations through excessive swipe fees. Negotiated in March with small businesses, the agreement aims to cap transaction fees and introduce collective bargaining akin to larger retailers.
The National Retail Federation has opposed the settlement, criticizing its fee caps as inadequate and providing only temporary relief. Judge Brodie's order reflects concerns about finalizing the agreement, and potentially sending the case to trial. This delay prolongs legal scrutiny on Visa and Mastercard's fee structures, shaping future regulations on payment processing fees. Previous partial settlements in 2018 totaled $6.2 billion but left unresolved issues, leading to the current $30 billion proposal. This dispute highlights ongoing concerns over fairness for merchants, particularly small businesses reliant on credit card transactions.
