Visa & Mastercard Settle w/ West Virginia
West Virgina wins battle against Visa & Mastercard…
Visa USA and MasterCard International must set aside $12.1 million in the form of a sales tax moratorium for the citizens of West Virginia following a settlement reached with the state. The suit filed in October 2003 by WV Attorney General Darrell McGraw charged Visa and MasterCard with violating antitrust and consumer protection laws. Seeking restitution and civil penalties on behalf of West Virginia consumers, McGraw alleged that Visa and MasterCard employed illegal business practices that increased the cost of doing business with merchants who accepted Visa and MasterCard credit and debit cards.
The suit also charged that many merchants that accepted Visa and MasterCard credit cards were forced to accept debit cards as well. The merchants were charged the same fees for credit cards and debit cards, even though the cost and risk associated with debit cards is much less. The state alleged that the increased costs were then passed onto consumers with virtually every retail product or service costing more.
West Virginia is the first state to win restitution from the credit card companies. “This has been a long time coming and involved the devotion of a lot of time and resources,” McGraw said. “I hope that the settlement clips the wings of anyone embarking on a course of illegal conduct.” Similar charges were filed in 1996 by Target, Sears and Wal-Mart seeking damages on behalf of merchants - not consumers - and was settled in 2003.
* Visit our site to compare a wide range of credit card offers >
