Credit card swipe fees cost retailers thousands each year, especially when the percentages are on large purchases such as swimming pools.
Today, the National Retail Federation and the Retail Industry Leaders Association filed a joint brief asking the federal appeals court to overturn a December 2013 ruling that settled a lawsuit with Visa and MasterCard over the fees, which average about 2 percent of the transaction.
Of the 19 retailers and trade associations that filed the original suit, 10 rejected the settlement when proposed in 2012.
“The truth is that there is no settlement with the retail industry, only an agreement with a handful of merchants who do not represent the industry as a whole,” said NRF Senior Vice President and General Counsel Mallory Duncan. “Given that the judge knew this backroom deal was opposed by a broad range of small and large retailers alike and allows these fees to continue to skyrocket, it clearly should never have been approved. This is a serious mistake the appellate court needs to correct.”
According to the NRF, the settlement grants retailers what amounts to pennies on the dollar, and small retailers would see only a few hundred dollars each.
The NRF also hasn't announced whether it would appeal a federal court ruling capping debit swipe fees at 21 cents.
