The Eastern District Court of New York Tuesday issued an order rejecting a $30 billion settlement between U.S. merchants, Visa, Mastercard, and other financial institutions, according to reports. The settlement involves a lawsuit dating back to 2005 over credit card interchange fees and would have resulted in Visa and Mastercard capping credit card interchange fees into 2029 and a posted interchange rate reduction lasting for a period of at least three years.
Although the order is unavailable, the court explains that “it is not likely to grant final approval to the Settlement and accordingly denies Plaintiffs’ motion for preliminary settlement approval.”
America’s Credit Unions had several concerns with the proposed settlement as announced in March, including reduction in the interchange rate paid by merchants, and will continue to monitor the latest legal developments and what they mean for credit unions.
