Wal-Mart Sues Visa (V) for $5B Over Interchange Fees

Wal-Mart (WMT) is suing Visa (V) for more than $5 billion over what it says were excessively high card swipe fees, the Wall Street Journal reports.

The world’s largest retailer is accusing the payment network of violating antitrust regulations by setting uncompetitive swipe fees — also known as Interchange fees — and for generating more than $350 billion for card issuers between Jan. 1, 2004 and Nov. 27, 2012.

“The anticompetitive conduct of Visa and the banks forced Wal-Mart to raise retail prices paid by its customers and/or reduce retail services provided to its customers as a means of offsetting some of the artificially inflated Interchange Fees,” the company said in court documents.

“As a result, Wal-Mart’s retail sales were below what they would have been otherwise.”

The lawsuit comes after the U.S. retailer that made $4.4 billion in profit for the last quarter, opted out of a $5.7 billion settlement with Visa and Mastercard (MA) in December.

Visa shares, which are currently trading at a multiple of nearly 21x next year’s estimated earnings, are down $2.22, or 1.03%, at $213.55 in pre-market trading Friday.

Jasper - The Real Deal!

Risk Our Money Not Yours | Get 80% Off Any Account!

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

1 Comment on Wal-Mart Sues Visa (V) for $5B Over Interchange Fees

  1. So as a customer of Walmart what is in it for me. I am the one who paid higher fees and also was charged those visa fees for using Walmarts prepaid visa cards.

Leave a Reply to Nicole Cancel reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.