Target opposes proposed $7.25B settlement on credit card fees

Minneapolis-based Target Corporation has joined a growing list of more than two dozen retailers who object the propposed multi-billion dollar deal to settle a seven-year class-action lawsuit, Twin Cities Business reports. More than 7 million merchants claim Visa, MasterCard and some of the nation's largest banks fixed the fees they charge to retailers on credit card transactions. A Minneapolis-based law firm filed the case in 2005 and announced the agreement earlier this month. The class-action settlement still requires a judge's approval.
Author:
Updated:
Original:

Minneapolis-based Target Corporation has joined a growing list of more than two dozen retailers who object the propposed multi-billion dollar deal to settle a seven-year class-action lawsuit, Twin Cities Business reports.

More than 7 million merchants claim Visa, MasterCard and some of the nation's largest banks fixed the fees they charge to retailers on credit card transactions. A Minneapolis-based law firm filed the case in 2005 and announced the agreement earlier this month. The class-action settlement still requires a judge's approval.

Target issued the following statement:

“Target believes the proposed interchange fee settlement is bad for both retailers and consumers. The proposed settlement would perpetuate a broken system, restrict retailers from any future legal action, and offer no long-term relief for retailers or consumers. In addition, Target has no interest in surcharging guests who use credit and debit cards in order to allow Visa and MasterCard to continue charging unfair fees. We will continue to explore our options while working toward a solution that represents true reform.”

Next Up

coronavirus, SARS-CoV-2

Minnesota confirms America's 1st case of Brazil P.1 COVID strain

The strain was found in a Twin Cities metro resident who recently traveled to Brazil.

classroom

Gov. Walz announces education plan aimed at eliminating disparities

The plan covers seven categories, including closing the racial education gap and improving opportunities in rural Minnesota

Tax forms

Charges: Otsego cleaning business underreported sales

An Otsego woman is accused of owing more than $20,500 in sales tax, penalties and interest.

Screen Shot 2020-04-17 at 2.58.26 PM

Walz gives vaccine providers 3-day, 7-day deadlines to use doses

Those that don't use their allocation will be given less in the future.

purse

Border officers seize more than $550K in counterfeit designer goods

The shipments of fake goods were seized on Jan. 22.

Landfill plastic bags

4 Twin Cities landfills seek to expand capacity

This comes as the area's waste-to-energy facilities are operating at capacity.

Marcus Carr

3 of 10 finalists for NCAA's top point guard award have MN ties

Not a bad way to represent the State of... Basketball?

Justice, court

Minnesota grants unconditional pardon to grandmother facing deportation

Gov. Tim Walz says it's the first full pardon granted by the state in 35 years.

covid-19, vaccine

Minnesota changes vaccine appointment process, here's what to know

Walz also announced plans for a mass vaccination event at Xcel Energy Center.

covid-19, coronavirus

Here is Minnesota's COVID-19 update for Monday, Jan. 25

The latest figures from MDH have been released.

covid-19, vaccine

Minnesota health leaders say state's vaccine progress better than figures suggest

Minnesota is lagging behind national vaccination rates, but MDH leaders say this is because it's holding 2nd doses in reserve.

Related

Target agrees to sell consumer credit card portfolio to TD Bank Group

Toronto-based TD Bank Group will acquire Target's consumer credit card portfolio for nearly $6 billion, according to a company news release. The Minneapolis-based retail giant has also entered into a seven-year agreement under which TD Bank will underwrite, fund and own future Target Credit Card and Target Visa receivables in the U.S.

Target's five-percent-off credit card is a hit

Target says customers who have Redcards are spending about 50 percent more at Target stores than they did in their pre-card days. That has more than offset the cost of the five percent discount. It was also a factor in the six percent increase in first-quarter sales.

Minn. law firm at center of massive new bank settlement

Pressed for years by a Minneapolis law firm, Visa, MasterCard and 13 of the country's biggest banks have agreed to pay $7.25 billion to settle accusations by retailers that they engaged in price-fixing on credit card transaction fees. The settlement could be the largest antitrust class-action settlement in U.S. history. Lead counsel for the class plaintiffs is K. Craig Wildfang, an antitrust lawyer in Minneapolis with Robins, Kaplan, Miller & Ciresi.