Will You Benefit From the Walmart vs. Visa Lawsuit?

Photo (cc) by amitp

In a real life clash of the titans, Walmart is suing Visa, claiming the card company conspired with banks to fix prices on the transaction fees retailers pay Visa.

The world’s largest retailer is asking for $5 billion in damages from the alleged price fixing and other antitrust violations.

According to The Wall Street Journal, Walmart claims that excessively high transaction fees have generated more than $350 billion for card issuers over the period from 2004 to 2012, at the expense of merchants and customers.

“The anticompetitive conduct of Visa and the banks forced Wal-Mart to raise retail prices paid by its customers and/or reduce retail services provided to its customers as a means of offsetting some of the artificially inflated interchange fees,” the company said. “As a result, Wal-Mart’s retail sales were below what they would have been otherwise.”

Will consumers benefit from this lawsuit? Potentially.

If the lawsuit ends in Walmart’s favor, then swipe fees for retailers could go down – savings that could be passed on to customers at checkout. But don’t expect to see those savings anytime soon.

ECreditDaily.com said, “Any savings for the public is far off on the horizon as these corporate giants spend millions in legal fees over a protracted period of time.”

Worst-case scenario: Walmart could drop its acceptance of Visa, but that would come at a heavy price, said eCreditDaily.com. The retail giant would risk driving away customers with Visa cards.

Bloomberg said this is the latest in a legal fight between retailers and card companies that has gone on for more than eight years. Retailers have contended that a lack of competition with industry giants Visa and MasterCard has enabled card swipe fees — about 2 percent of each purchase — to be set at unreasonably high levels. Walmart was one of dozens of merchants, including Target and Amazon, that bowed out of a class-action settlement between retailers and the two major card companies several months ago, in order to pursue their own lawsuits against the card companies.

Companies that opted out of the settlement have argued that the deal wouldn’t prohibit card networks from raising card-processing fees later on and would require merchants to waive their rights to sue payment networks on all current or future payment methods, ranging from credit cards to mobile phones.

What do you think of the Walmart lawsuit against Visa? Share your thoughts below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
9 Everyday Problems You Can Solve With Vaseline

Forget expensive specialty products. Good ol’ petroleum jelly can address many common annoyances.

7 Social Security Blunders That Can Ruin Your Retirement

Making even one of these mistakes can easily cost you tens of thousands of dollars.

7 Deadly Health Mistakes People Make After Age 50

Simply avoiding these actions, or lack thereof, can improve the odds of a longer, more healthful life.

How Much of My Social Security Benefit Can My Ex Take From Me?

A man wonders if his ex-wife will siphon away his Social Security benefit.

5 Surveys For Money Sites To Get Paid For Your Opinion

Yes, you can earn extra cash by taking online surveys. But some websites are better than others for this. Here are a few of our favorites.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

8 Tips for Retiring Comfortably on Social Security Alone

It’s never too early to start learning how to live well while living on less.

Am I Eligible for My Mother’s Social Security Benefit?

Can an adult daughter tap into her late mother’s benefit?

11 Generic Products You Should Buy at Costco

Not all generics are worthwhile, but these are among the best from Costco’s Kirkland Signature brand.

9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

This Surprise Factor Can Raise Your Risk of Dementia

Nearly half of U.S. residents may face this threat.

3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

Organize Your Home With These 10 Thrift Store Finds

Resolve to be clutter-free in 2021 with these secondhand purchases.

This Gas Station Scam Is Victimizing More Drivers

For the second straight year, a growing number of Americans believe they’ve fallen prey to this scam.

11 Laws You Could Be Breaking Without Knowing It

Seriously? Fibbing about the weather is a crime? This and other little-known legal traps await the unwary.

6 Legal Documents Retirees Need — but Don’t Have

Few retirees have all of these documents that are crucial to their golden years — especially during a pandemic.

These Are the 3 Best Used Cars You Can Buy

These vehicles boast reliability, safety and long-lasting value.

13 Things Seniors Can Get for Free — or Almost Free

There are many ways to get cheap or free services and goods after reaching a certain age.

15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

Internet Providers Can’t Charge You for This Anymore

Starting this month, your ISP no longer can bill you for this fee.

Can a Divorced Widow Claim Her First Husband’s Social Security Benefits?

The rules are complicated when it comes to eligibility for survivors benefits.

9 Small Expenses That Are Bleeding Your Budget Dry

Keep more of future paychecks by eliminating these budget-busting unnecessary expenses.

15 Painless Ways You Can Cut Costs in 2021

Follow these tips to save, so you’ll have money for things that really matter.

11 Huge Retirement Costs That Are Often Overlooked

Does your retirement budget account for all of these costs?

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.