An Analysis of the Proposed Interchange Fee Litigation Settlement
25 Pages Posted: 21 Aug 2012 Last revised: 3 Sep 2012
Date Written: August 21, 2012
This paper is a brief analysis of the proposed class settlement in In re Interchange Fee and Merchant Discount Antitrust Litigation, MDL 1720 (E.D.N.Y.). The analysis concludes that the relief plaintiff class members would obtain from the proposed settlement is largely illusory. The settlement does not result in meaningful reform of the interchange fee system and appears to provide less relief than would likely result from continued litigation. In short, the settlement is a bad deal for merchant plaintiffs and the public at large.
Keywords: interchange, credit cards, merchant discount, issuer, acquirer, Visa, MasterCard, MDL 1720, settlement, surcharge, routing, honor all cards, release
JEL Classification: K41, L41, L44
Suggested Citation: Suggested Citation