On Friday July 13, 2012 Visa and MasterCard agreed to settle the class action antitrust litigation that Traditions and four other retailers filed over 7 years ago. The $7.25 Billion agreement is the largest antitrust settlement in history. In addition to the payment of damages, Visa and MasterCard have agreed to eliminate rules that prohibited merchants from steering customers towards using lower cost forms of payment, and will permit merchants to institute surcharges to recover the costs associated with credit card acceptance.
While it remains to be seen if credit card surcharges become commonplace, the potential threat that retailers will institute these fees will provide a very powerful economic incentive for Visa and MasterCard to reduce the costs imposed on merchants for credit card transactions.
Sunday Nov 25, 2012