Target Speaks Out Against Interchange Suit Settlement
July 23, 2012
It was apparent from the beginning that there was not unanimity among all retailers regarding the proposed settlement of the 2005 interchange lawsuit reported last week by CardNotPresent.com. The trade group representing gasoline retailers and convenience stores immediately expressed disappointment with the settlement and on Friday, the third-largest retailer in the U.S. joined NACS in condemning the agreement. Target, which trails only Walmart and grocery chain Kroger in retail sales according to the National Retail Federation, called the proposed agreement hammered out by attorneys for the credit card industry and a group of influential merchants “bad for both retailers and consumers,” according to a statement.
“The proposed settlement would perpetuate a broken system, restrict retailers from any future legal action and offer no long-term relief for retailers or consumers,” Target says in the statement. “In addition, Target has no interest in surcharging guests who use credit and debit cards in order to allow VISA and MasterCard to continue charging unfair fees. We will continue to explore our options while working toward a solution that represents true reform.”