Retailers settle antitrust case against Visa and MasterCard

NEW YORK (AP) -- Thousands of major U.S. retailers including Wal-Mart and Sears have settled their antitrust case against Visa and MasterCard over debit cards, winning $3 billion and lower transaction fees for use of the popular plastic.
The deal was hailed by the retailers' lawyer as a "major victory" for merchants and their customers.
"The world of debit is about to change for the better, for merchants and for consumers," said the retailers' lead attorney, Lloyd Constantine, after signing a deal with Visa USA on Wednesday. "Five million merchants will now get relief from excess fees that were forced down their throats."
The Visa deal calls for the company to pay roughly $2 billion to the retailers and reduce debit card fees, Constantine said. MasterCard International will pay $1 billion and reduce fees.
The case against Visa had been scheduled to go to trial this week; MasterCard settled with the retailers Monday. The card companies faced billions of dollars in damages if they lost at trial.
The retailers had claimed that Visa and MasterCard trapped them into paying high fees by demanding that stores that accept their credit cards also accept their debit cards.