NEW YORK — A group of retailers and trade groups has launched a last-ditch effort to stop a settlement worth at least $6 billion that Visa Inc., MasterCard Inc., and major banks have agreed to pay retailers for alleged fee fixing.
Ten out of the 19 retailers and trade groups that are plaintiffs in the class-action lawsuit against the credit card companies say they’re trying to block the deal because they believe it would allow the credit card industry to continue to take advantage of merchants and their customers while stopping competition.
The proposed settlement, which was disclosed in July, is expected to be submitted to the US District Court in Brooklyn by Oct. 19. Merchants objecting to the deal will then have 30 days to submit arguments urging the court to reject the proposal.
Under the settlement, stores will be allowed to charge customers more if they pay with a credit card.
The settlement covers only US transactions.
But the plaintiffs says that the settlement will not stop swipe fees from continuing to rise, which will hurt both retailers and shoppers, and that it will prevent any future legal challenges.