Mastercard, Visa face payouts to retailers after top court case
JOHANNESBURG – The U.K.’s top judges ruled in favor of retailers including J Sainsbury Plc in a blow to credit-card companies that could now face billions of pounds in damages.
The Supreme Court dismissed an appeal by Visa Inc. and Mastercard Inc., ruling that fees the companies were charging shops restrict competition.
The long-running litigation now allows Sainsbury as well as other supermarkets including Wal-Mart Stores Inc.’s Asda and Wm Morrison Supermarkets Plc, to proceed to a trial on the size of the damages, the judges said in their unanimous ruling Wednesday. At issue is so-called interchange fees, levied by banks at rates set by the card companies each time a consumer’s plastic is swiped at a register.
Source: iol.co.za