Hearing Next Week for Final Approval of $7.25B Visa/MC Settlement

BROOKLYN, N.Y. — The $7.25 billion settlement reached in July 2012 to end a class-action lawsuit over credit card transaction fees has crossed over an important hurdle for payouts.

Visa Inc. and MasterCard Inc. will continue to pursue the settlement over swipe fees despite opposition to the deal reached a level that would have allowed the card companies to walk away.

Twenty-five percent was the threshold that permitted the credit card companies to back out of the deal, which has been described as the largest-ever U.S. antitrust accord. Defendants in the case also include card-issuing banks such as JPMorgan Chase, Bank of America, Citibank, Wells Fargo and Capital One.

Scores of major retailers — including 7-Eleven Inc., Alon Brands Inc., Wal-Mart Stores Inc. and Starbucks Corp. — had objected to the deal and claimed merchants should receive more money. Trade groups, such as those for convenience and fuel retailers and the National Retail Federation, also advocated against the settlement.

"The defendants as a group had the right to terminate the settlement agreement because the volume threshold of 25 percent was exceeded, but elected not to do so," MasterCard President and CEO Ajay Banga told investors recently.

Currently, the case is before U.S. District Judge John Gleeson presiding in Brooklyn. A fairness hearing for final approval of the proposed settlement is slated for Thursday.

Small businesses stand to benefit, including online adult websites, which are prime plaintiffs given the volume of credit card purchases.

The nuts and bolts of the class-action suit revolves around the presumption that Visa and MasterCard, along with their member banks, conspired to fix and artificially inflate the interchange fees that merchants pay to accept Visa and MasterCard branded debit and credit cards. 

Patrick Jermyn, an attorney with Harrison, N.Y.-based Class Action Refund LLC, who in recent years has been alerting the online adult sector about the litigation, says that any company that accepted Visa and MasterCard credit and or debit cards beginning in 2004 will be eligible to participate in the settlement.

That relevant time starts in 2004 and could go as far as 2011, said Jermyn, whose firm is one of many class action recovery firms working on the suit.

The case is In re Payment Card Interchange Fee and Merchant Discount Litigation, 05-MD-1720.   

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Beca Barbie Makes Her Hookup Hotshot Debut

Beca Barbie has made her debut for Hookup Hotshot alongside Nade Nasty.

2025 XBIZ Amsterdam Website Launches With Call for Speakers

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

NC Governor Vetoes Bill Targeting Adult, Could Face Override

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Valerica Steele Headlines Jonni Darkko's 'DVP Sluts'

Valerica Steele toplines director Jonni Darkko’s “DVP Sluts,” from Evil Angel.

Michael Ninn Returns With 'Catherine' Sequel Made Entirely by AI

Veteran filmmaker Michael Ninn, though retired from the adult business for the past 10 years, recently unveiled a new episodic project titled "Catherine II: The Series," which serves as a sequel to his 2005 adult film "Catherine."

25,000 Sign Petition to Legalize Pornography in Ukraine

An OnlyFans model’s petition to decriminalize pornography in Ukraine has amassed the 25,000 signatures required for official consideration by President Volodymyr Zelensky.

WannaCollab Joins Pineapple Support as Supporter-Level Sponsor

WannaCollab has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Alison Rey Stars in Latest From New Sensations

Alison Rey stars with Isiah Maxwell in the latest release from New Sensations.

FSC Unpacks SCOTUS Age Verification Ruling in Webinar

The Free Speech Coalition conducted a public webinar Tuesday to help adult industry stakeholders understand the Supreme Court’s recent decision in FSC v. Paxton, and its potential implications.

Bad Bella Fronts Latest From MYLF

Bad Bella stars with Hayden Wild in the latest release from MYLF.

Show More