Grocers Group Rejects Interchange Pact
Aug. 7, 2012
Merchant opposition to the proposed settlement of the 2005 interchange lawsuit is gaining momentum. On Friday, another group representing grocery retailers announced it will oppose the $7.25 billion proposal recently struck by attorneys. The National Cooperative Grocers Association, a consortium of 128 members operating in 35 states, was a plaintiff in the original lawsuit and rejected the compromise hammered out over the course of several years.
“When NCGA signed onto this action, we did so in the interest of consumer fairness and in support of industry transparency,” says Robynn Shrader, CEO of NCGA. “This settlement falls short of providing true reform in the system by continuing to allow credit card issuers and credit card networks to exploit retailers and consumers without risk of repercussion.”
The NCGA says it is urging other retailers to reject the proposed settlement and push for a revised settlement that “holds credit card issuers accountable, ensures competition in the market and encourages innovation in payment systems.”