Target Corp. has joined an industry trade group in objecting to a proposed anti-trust settlement with credit card companies over their swipe fees.
Target joined the National Association of Convenience Stores (NACS) and other retailers in objecting to a $7.25 billion settlement on behalf of a class of approximately seven million merchants in the United States who accept Visa and MasterCard credit cards and debit cards.
On July 13 Visa, MasterCard and 13 of the country's biggest banks agreed to what would be the largest antitrust class-action settlement in U.S. history regarding accusations by retailers that they engaged in price-fixing on credit card transaction fees.
Target said in a statement that "the proposed interchange fee settlement is bad for both retailers and consumers. The proposed settlement would perpetuate a broken system, restrict retailers from any future legal action and offer no long-term relief for retailers or consumers. In addition, Target has no interest in surcharging guests who use credit and debit cards in order to allow VISA and MasterCard to continue charging unfair fees. We will continue to explore our options while working toward a solution that represents true reform."
The NACS was the first plaintiff in the class to reject terms of the proposed settlement. Now, more than two dozen merchants have joined the NACS in opposition to the proposal.
"It's a bad deal and the growing backlash against the terms of the proposed settlement that we are hearing from retailers confirms that this is far from a done deal," said NACS senior vice president of government relations Lyle Beckwith in a statement.
The NACS is telling retailers to proceed with caution in the coming weeks to any unsolicited offers regarding a cut of the settlement funds.
