Lowe’s Joins Opposition to Interchange Settlement
Aug. 27, 2012
Another national retailer group, and one of its most visible members, has joined other high-profile merchants that have publicly rejected the proposed $7.25 billion interchange settlement . Home improvement giant Lowe’s and the Retail Industry Leaders Association late last week joined retailers like Walmart and Target and merchant groups like the National Retail Federation when they objected to the compromise hammered out by attorneys in the six-year-old lawsuit.
“The proposed settlement preserves the Visa/MasterCard duopoly and does nothing to prohibit the credit card networks from continually increasing hidden swipe fees,” said Scott Mason, Lowe’s vice president of government affairs. “Potentially [it] restricts new payment innovations that could bring competition to the marketplace and provides no transparency to the retailer or the customer of what the credit card networks charge.”
A preliminary settlement is scheduled to be filed with the court on Oct. 19. Until then, merchants can voice objections to the proposal that the judge will take into consideration when deciding at hearings after the first of the year whether to proceed with the settlement.