Chase credit card
09/11/06
Groups accuse credit card companies of antitrust
In an effort to curb steep credit card interchange fees, four major merchant associations have filed an antitrust, class-action lawsuit against Visa, MasterCard and major U.S. banks.
The suit was filed late last month in the U.S. District Court for the Eastern District of New York. The plaintiffs are the National Association of Chain Drug Stores, the National Association of Convenience Stores, the National Community Pharmacists Association and the National Cooperative Grocers Association.
"Credit card interchange fees are the third-largest expense for many chain drug stores, after rent and the cost of labor, stated Craig Fuller, NACDS chief executive officer. "These costs have skyrocketed over the past years, even though the costs of credit card transactions for the banks have fallen."
The fees, which are meant to cover the cost of processing a credit card transaction and the risk taken by the issuing bank that the credit will not be repaid, also impact consumers. In 2004, such fees cost the average American household about $232.
The suit was filed late last month in the U.S. District Court for the Eastern District of New York. The plaintiffs are the National Association of Chain Drug Stores, the National Association of Convenience Stores, the National Community Pharmacists Association and the National Cooperative Grocers Association.
"Credit card interchange fees are the third-largest expense for many chain drug stores, after rent and the cost of labor, stated Craig Fuller, NACDS chief executive officer. "These costs have skyrocketed over the past years, even though the costs of credit card transactions for the banks have fallen."
The fees, which are meant to cover the cost of processing a credit card transaction and the risk taken by the issuing bank that the credit will not be repaid, also impact consumers. In 2004, such fees cost the average American household about $232.