MasterCard, Visa $336 million Exchange Settlement Gets OK

by Mike Bevel, CollectionIndustry.com

It?s nice to know that, even if Visa and MasterCard can?t agree on who?s going to be the credit card of the World Cup ? they can agree on one thing: conspiring to set hidden fees.

A judge has given preliminary approval to a $336 million settlement. The lawsuit claims that MasterCard International and Visa International conspired to impose hidden fees on cardholders who make purchases overseas.

Visa and MasterCard control 75 percent of the credit card market. The suit further alleges that the companies imposed a 1 percent surcharge on overseas transactions made with credit and charge cards. The banks that run the networks, including Citigroup and Bank of America Corp., impose a 2 percent fee. The group suit said the networks and banks conspired to set fees, which they hid from customers. The credit card companies and banks deny the allegations.

Of course, the credit card companies and bank deny the allegations.