Is your retail business entitled to some cash back from Visa/MasterCard
Posted by: Curtis Stevens on December 9th, 2009

Many retailers will receive some cash back from Visa/MasterCard due to a lawsuit brought by some of the top largest retailers that was settled in 2003.  It totals over 1 billion.   The original settlement was for 3.1 billion, which 1.85 billion has already been paid and were allowed to pay it on an installment plan.  Instead of making yearly payments, they will pay 1.1 billion all at once this fall.  This means they will receive a little less than agreed, but it does mean they will receive it all at once instead of over the next 2 years per the original agreement. This is a little good news for the credit card processing industry I suppose. I’m glad V/MC had that much money to pay, which they probably have plenty more due to their profit margin. The payments will go out to over 600,000 merchants and the amount is based on their volume of signature debit card transactions.  The lawsuit itself was about V/MC rules of honor all cards, which merchants must honor all cards if they wanted to accept them.  Now, merchants can choose to either accept debit or credit or both.

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