Merchants declare war on Visa and Mastercard over transaction fees Business

Retailers have stepped up their battle against Visa and Mastercard with more than a dozen major brands registering new legal claims over card payment fees.

The High Court writs, which count Levi, Superdry and AllSaints as plaintiffs, will put pressure on the two credit card giants following Amazon’s attack on Visa’s high transaction fees last month.

The fashion chains, advised by attorneys for Stephenson Harwood, are seeking compensation for historical fees billed in violation of competition laws.

The complaints were registered just days after Amazon said it would block customers from purchasing with Visa credit cards on the website in Britain. The e-commerce giant has said it will be forced to stop accepting credit cards from January 19, blaming Visa’s “high fees” after Brexit.

Visa said the legal battle over interchange fees was unrelated to Amazon’s decision. He had previously said he was “disappointed that Amazon threatens to restrict consumer choice in the future.”

A Visa spokesperson added, “Visa considers all claims relating to the exchange to be without merit and will be vigorously defended. “

The Supreme Court ruled last year that the fees imposed by Visa and Mastercard on retailers for each card transaction violated EU and UK competition law.

Supermarket chains Sainsbury’s, Asda and Morrisons were among the first to sue Visa and Mastercard. Sainsbury’s settled with Mastercard in August, but its Visa claim is still pending.

The amount of damage that could be owed to retailers is not yet determined.

Industry insiders said it’s no surprise more names have come forward to sue Visa and Mastercard, as companies expect an initial business outcome as early as next year. Meanwhile, others think they may be able to settle out of court before then.

Mastercard said, “We have a strong belief that retailers of all sizes derive real value from our network and we are committed to helping our retail partners adapt and grow their businesses during this difficult time. “

Levi, Superdry and AllSaints declined to comment.

More about this article: Read More
This notice was published: 2021-12-12 09:00:00

Leave a Reply

Your email address will not be published. Required fields are marked *