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Table of Contents

Lead Story

Visa and Mastercard at 50: Evolving in evolving market

Patti Murphy


Industry Update

Major Visa, MasterCard settlement voided: Now what?

PCI SSC unveils new tools for small, midsize merchants

Denmark's Nets, BOKIS piloting digital wallet

UK joins backlash against interchange


GS Advisory Board:
The state of mobile today - Part 1

The art of shopping cart conversion

Cliff Teston

Payment technology timeline


Merging lanes on the POS road map

Dale S. Laszig
DSL Direct LLC

Fraud in the payment system: What - me worry?

Brandes Elitch
CrossCheck Inc.

Deaf to new product introductions?

Steven Feldshuh
Merchants' Choice Payment Solutions East


Street SmartsSM:
Time to treat MLSs right

John Tucker
1st Capital Loans LLC

Contract management in the paperless age

Adam Atlas
Attorney at Law

How and why to pursue ISVs

Kelly Cullum
SUR Technology Holdings LLC

Company Profile

New Products

Web-based statement analysis, CRM platform

Clientvine LLC

Flexible, EMV-ready mobile payment solution

Castles Technology Co. Ltd.


Are achievers born or made?


Letter from the editors

Readers Speak

Resource Guide


A Bigger Thing

The Green Sheet Online Edition

July 24, 2016  •  Issue 16:07:02

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Major Visa, MasterCard settlement voided: Now what?

The unraveling of the multibillion-dollar class action lawsuit filed by 12 million retailers against Visa Inc., MasterCard Worldwide and their issuing banks, has created a new kind of cashless experience for retailers, leaving millions of claimants with nothing to show after a decade of litigation. In a unanimous decision issued June 29, 2016, a three-judge panel in New York's 2nd U.S. Circuit Court of Appeals declared the 2013 settlement null and void.

The settlement was hammered out to resolve disputes over interchange fees and card brand rules. It was reduced from $7.25 billion to $5.7 billion after several major retailers opted to pursue their own claims against the card brands.

Judges Pierre Leval, Dennis Jacobs and Ralph Winter assailed plaintiffs' attorneys for being overpaid and underincented due to conflicts of interest that prohibited them from effectively representing clients. "Class representatives had interests antagonistic to those of some of the class members they were representing," stated Judge Dennis Jacobs in the opinion. "The fault lines were glaring as to matters of fundamental importance."

Judge Jacobs added that the panel did not intend to impugn the dignity or integrity of class counsel, but wanted to point out structural flaws that doomed proceedings from the start. The judges introduced previous, precedent-setting class actions that failed to appropriately represent the interests of all defendants, due to the magnitude of class populations.

Round two begins

"From day one, this class action settlement has been a train wreck that reflects a growing disconnect between payment service providers and retailers," said a payments industry source familiar with the filing. "Retailers complain; card brands cave in without attempting to defend their value proposition; attorneys have been the only winners so far, but the debacle is far from over."

The court ruling leaves many unanswered questions among retailers and payments industry stakeholders alike. Following are several of the open issues yet to be addressed:

More information on the background and legal ramifications of the retail class action suit and subsequent decision to dismiss and start over can be found at:

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Electronic Merchant Systems | Board Studios