Retailers Welcome Supreme Court Action on Credit C

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Retailers Welcome Supreme Court Action on Credit C
Washington, October 5--The National Retail Federation today welcomed the U.S. Supreme Court's decision to deny an appeal of a lower-court ruling on whether banks that issue Visa and MasterCard credit cards can also issue competing cards. "This decision clears the way for increased competition in the credit card marketplace that should lead to lower costs for retailers and the consumers we serve," NRF Senior Vice President and General Counsel Mallory Duncan said. "NRF has been a long-time leader in the drive for reasonable transaction and interchange fees. The fees charged by credit card companies are a hidden tax on American consumers that drives up the price of products for everyone, even those who pay by cash or check. Without competition, these fees have only gotten worse." "As a follow-up to last year's settlement over Visa/MasterCard debit card practices, this case is another victory in creating a level playing field between retailers and credit/debit card companies," Duncan said. "Visa and MasterCard should not be allowed to dictate who gets into the market, and this case further enhances the right of retailers and consumers to have a choice." NRF was a lead plaintiff in a federal class-action antitrust lawsuit against Visa and MasterCard debit card practices settled last year. Under the settlement, Visa and MasterCard agreed to end their "honor all card" rules that required merchants who accepted their credit cards to also accept their debit cards. The ruling made it possible for retailers to choose whether to accept signature debit transactions and opened the possibility of negotiating more reasonable fees for those transactions. The Supreme Court let stand a 2003 ruling by the U.S. Court of Appeals for the Second Circuit that Visa USA Inc. and MasterCard International Inc. violated federal antitrust law by barring member banks from issuing credit cards from competitors. The court rejected without comment separate appeals of the ruling. The decision will allow banks to begin issuing multiple brands of credit cards.